If you give a gift of property to a deductible gift recipient (DGR) that we (the ATO) value at more than $5,000, you may be able to claim a tax deduction.
Property is not tax deductible under this gift type if it is valued at less than $5,000.
However, if you purchased it within 12 months before making the donation it may still be tax deductible, no matter how much it is worth.
What is property?
Property has a wide meaning, it is more than just physical things (such as land and objects). It includes rights and interests that can be owned and have a value (such as shares and ownership rights.
If your gift is property valued by us at more than $5,000 and you:
- purchased the property more than 12 months before donating it you can claim a tax deduction for the amount we valued the property on the Valuation certificate.
- did not purchase the property (for example, won or inherited it) and donated it at any time you can claim a tax deduction for the amount we valued the property on the Valuation certificate.
Example 1 – Property valued at more than $5,000
During 2014 Michael donated a block of land to a DGR. He purchased the land in 1980 for $50,000. He applied to the ATO for a valuation in 2014 and in the Valuation certificate the land was valued at $150,000. Michael can claim a deduction for the amount of the valuation (that is, $150,000).End of example
Example 2 – Did not purchase the property
In November 2016 Peter donated a signed sports jersey that he had won in a lottery to a DGR. He won the lottery in April 2016. The lottery valued the jersey at $10,000. Michael cannot use the lottery valuation to claim a tax deduction as he did not purchase the property. He applied to the ATO for a valuation and in the Valuation certificate the jersey was valued at $12,000. Michael can claim $12,000.End of example
See also:If a donor makes a gift of property that we value at more than $5,000 they may be able to claim a tax deduction.