Draft Taxation Determination

TD 1999/D71

Income tax: capital gains: is a capital gain or capital loss made from an antique car or a vintage car disregarded?

  • Please note that the PDF version is the authorised version of this ruling.
    This document has been finalised by TD 2000/35.

FOI status:

Not previously released in draft form

Preamble

Draft Taxation Determinations (DTDs) present the preliminary, though considered, views of the Australian Taxation Office. DTDs should not be relied on; only final Taxation Determinations represent authoritative statements by the Australian Taxation Office.

1. Yes.

2. Section 118-5 of the Income Tax Assessment Act 1997 states that you disregard a capital gain or capital loss you make on a car, motor cycle or similar vehicle. A car is defined to be 'a motor vehicle designed to carry a load of less than 1 tonne and fewer than 9 passengers' (subsection 995-1(1)).

3. A car is a CGT asset under Division 108. A car may be a collectable in terms of subsection 108-10(2) if it is an antique. A car may be a personal use asset in terms of subsection 108-20(2) if it is used or kept mainly for your (or your associate's) personal use or enjoyment. In either case, it remains a car for the purposes of section 118-5 and any capital gain or capital loss made on it is disregarded under that section.

Your comments

4. We invite you to comment on this Draft Taxation Determination. We are allowing 4 weeks for comments before we finalise the Determination. If you want your comments considered, please provide them to us within this period.

Comments by Date: 10 September 1999
Contact officer details have been removed following publication of the final ruling.

Commissioner of Taxation
11 August 1999

References

ATO references:
NO 99/10671-9
BO CGT asset summit 1999

ISSN 1038 - 8982

Subject References:
antique
car
capital gain
CGT asset
collectable

Legislative References:
ITAA 1997 108
ITAA 1997 108-10(2)
ITAA 1997 108-20(2)
ITAA 1997 118-5
ITAA 1997 118-5(1)
ITAA 1997 995-1