{"id":1214,"date":"2021-04-25T16:40:28","date_gmt":"2021-04-25T06:40:28","guid":{"rendered":"http:\/\/photo-web.com.au\/gn\/?page_id=1214"},"modified":"2022-07-05T18:42:34","modified_gmt":"2022-07-05T08:42:34","slug":"capital-gains-tax-2","status":"publish","type":"page","link":"https:\/\/photo-web.com.au\/gn\/parting-with-your-art\/capital-gains-tax-2\/","title":{"rendered":"Capital Gains Tax"},"content":{"rendered":"
more on Capital Gains Tax<\/h5>\n

<\/p>\n

I had hoped to provide more information on the various options for calculating Capital Gains Tax on collectables. But this has proved to be not so simple \u2014 and I suspect that will not surprise too many .<\/p>\n

The ATO<\/span> does have CGT<\/span> guides but examples apply to shares trusts and properties where precise information on original costs is easily determined.<\/p>\n

Collectibles are another matter altogether. I have some personal experience to offer.<\/p>\n

Personal Experience of CGT<\/span><\/strong><\/p>\n

I had income from a number of separate sales of photographs from my personal collection in 2020. Our accountant wanted the exact original costs of acquiring each item.  I had thought that items acquired before 1985 or for under $500, were exempt. The latter only applies if  item is sold singly, mine were part of a set.<\/p>\n

Fortunately, I had receipts in AUD<\/span> for the most expensive items so the axact profit or loss could be determined.  However, I elected not to search out receipts  for some 50 items bought over a fifteen year period from multiple ebay and online auction and dealers.<\/p>\n

Even if I had a receipt or a bank statement reference  these dont always show the details of purchase. I would have also have  needed to use the ATO<\/span> historical currency calculator  for items bought from foreign sellers to arrive at the AUD<\/span> price on the  day of purchase.<\/p>\n

There was also separate fee of $100 from the accountant for processing each separate Capital Gains Tax sale. I could see the cost of the accountant for each claim might negate any gain.<\/p>\n

So, without meticulous records Capital Gains Tax is hard.<\/p>\n

So several thousand dollars had to be declared as straight income even though I knew the sale price was well below the initial cost of acquisition ie that the sales represented a loss. However, my ongoing Cultural Gift deductions negated the income not eligible for CGT<\/span>.<\/p>\n

So, if you acquired a collection out of passion and interest rather than as a carefully documented investment, Capital Gains Tax can be a problem for which having a Cultural Gift deduction can be a useful offset.<\/p>\n

Sometimes a retrospective valuation can help ascertain the value of bequests on the day the work was inherited. That approach worked  for a client when there was clear evidence the  artist\u2019s work had substantially declined in value compared to what the collection sold for over a decade or so  since the bequest.<\/p>\n

 <\/p>\n

\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2013 \u2013<\/strong><\/p>\n

For more on Parting With Your Art<\/strong> \u2014 - click here<\/a><\/p>\n

\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2013<\/h5>\n

here\u2019s a link back to my main blog page \u2014 click here<\/a><\/p>\n

 <\/p>\n","protected":false},"excerpt":{"rendered":"

more on Capital Gains Tax I had hoped to provide more information on the various options for calculating Capital Gains Tax on collectables. But this has proved to be not so simple \u2014 and I suspect that will not surprise too many . The ATO<\/span> does have CGT<\/span> guides but examples apply to shares trusts and properties where precise \u2026 Continue reading Capital Gains Tax<\/span> \u2192<\/span><\/a><\/p>\n","protected":false},"author":2,"featured_media":0,"parent":1113,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","meta":{"wp_typography_post_enhancements_disabled":false,"footnotes":""},"class_list":["post-1214","page","type-page","status-publish","hentry"],"yoast_head":"\nParting With Your Art, Capital Gains, Taxation<\/title>\n<meta name=\"description\" content=\"Parting With Your Art, Capital Gains, Taxation\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/photo-web.com.au\/gn\/parting-with-your-art\/capital-gains-tax-2\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Parting With Your Art, Capital Gains, Taxation\" \/>\n<meta property=\"og:description\" content=\"Parting With Your Art, Capital Gains, Taxation\" \/>\n<meta property=\"og:url\" content=\"https:\/\/photo-web.com.au\/gn\/parting-with-your-art\/capital-gains-tax-2\/\" \/>\n<meta property=\"og:site_name\" content=\"Gael Newton Online\" \/>\n<meta property=\"article:modified_time\" content=\"2022-07-05T08:42:34+00:00\" \/>\n<meta property=\"og:image\" content=\"http:\/\/photo-web.com.au\/gn\/wp-content\/uploads\/2021\/04\/Taxation-01.jpg\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data1\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/photo-web.com.au\\\/gn\\\/parting-with-your-art\\\/capital-gains-tax-2\\\/\",\"url\":\"https:\\\/\\\/photo-web.com.au\\\/gn\\\/parting-with-your-art\\\/capital-gains-tax-2\\\/\",\"name\":\"Parting With Your Art, Capital Gains, Taxation\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/photo-web.com.au\\\/gn\\\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\\\/\\\/photo-web.com.au\\\/gn\\\/parting-with-your-art\\\/capital-gains-tax-2\\\/#primaryimage\"},\"image\":{\"@id\":\"https:\\\/\\\/photo-web.com.au\\\/gn\\\/parting-with-your-art\\\/capital-gains-tax-2\\\/#primaryimage\"},\"thumbnailUrl\":\"http:\\\/\\\/photo-web.com.au\\\/gn\\\/wp-content\\\/uploads\\\/2021\\\/04\\\/Taxation-01.jpg\",\"datePublished\":\"2021-04-25T06:40:28+00:00\",\"dateModified\":\"2022-07-05T08:42:34+00:00\",\"description\":\"Parting With Your Art, Capital Gains, Taxation\",\"breadcrumb\":{\"@id\":\"https:\\\/\\\/photo-web.com.au\\\/gn\\\/parting-with-your-art\\\/capital-gains-tax-2\\\/#breadcrumb\"},\"inLanguage\":\"en-AU\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\\\/\\\/photo-web.com.au\\\/gn\\\/parting-with-your-art\\\/capital-gains-tax-2\\\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-AU\",\"@id\":\"https:\\\/\\\/photo-web.com.au\\\/gn\\\/parting-with-your-art\\\/capital-gains-tax-2\\\/#primaryimage\",\"url\":\"http:\\\/\\\/photo-web.com.au\\\/gn\\\/wp-content\\\/uploads\\\/2021\\\/04\\\/Taxation-01.jpg\",\"contentUrl\":\"http:\\\/\\\/photo-web.com.au\\\/gn\\\/wp-content\\\/uploads\\\/2021\\\/04\\\/Taxation-01.jpg\"},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\\\/\\\/photo-web.com.au\\\/gn\\\/parting-with-your-art\\\/capital-gains-tax-2\\\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\\\/\\\/photo-web.com.au\\\/gn\\\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Parting with Your Art\",\"item\":\"https:\\\/\\\/photo-web.com.au\\\/gn\\\/parting-with-your-art\\\/\"},{\"@type\":\"ListItem\",\"position\":3,\"name\":\"Capital Gains Tax\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\\\/\\\/photo-web.com.au\\\/gn\\\/#website\",\"url\":\"https:\\\/\\\/photo-web.com.au\\\/gn\\\/\",\"name\":\"Gael Newton Online\",\"description\":\"photography, visual arts & humanities - 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