• Legal database
Legal database

Taxation Determination

TD 93/92

Income tax: are expenses incurred by a taxpayer in obtaining valuations for gifts of property donated under the Taxation Incentives for the Arts Scheme allowable deductions?

This version is no longer current. Please follow this link to view the current version.

  • Please note that the PDF version is the authorised version of this ruling.
    This document has changed over time. View its history.

FOI status:

may be releasedFOI number: I 1214976

This Determination, to the extent that it is capable of being a 'public ruling' in terms of Part IVAAA of the Taxation Administration Act 1953 , is a public ruling for the purposes of that Part. Taxation Ruling TR 92/1 explains when a Determination is a public ruling and how it is binding on the Commissioner. Unless otherwise stated, this Determination applies to years commencing both before and after its date of issue. However, this Determination does not apply to taxpayers to the extent that it conflicts with the terms of a settlement of a dispute agreed to before the date of issue of the Determination (see paragraphs 21 and 22 of Taxation Ruling TR 92/20).

1. Yes. Expenses incurred on or after 1 July 1989 in obtaining valuations solely for the purposes of subsection 78(6B) are deductible because they are tax-related expenses for the purposes of section 69 of the Income Tax Assessment Act 1936 (ITAA).

2. The expenditure is also deductible if the donation is a disposal of trading stock not in the ordinary course of business and an amount is included in the donor's assessable income under section 36 of the ITAA .

Example:

Taxpayer A donates a painting to a public art gallery under the Taxation Incentives for the Arts Scheme. As required by subsection 78(6B), the taxpayer obtains two valuation certificates which are then endorsed by the Committee on Taxation Incentives for the Arts. The total cost of obtaining the valuations was $600. As the $600 was incurred solely for the purposes of subsection 78(6B), Taxpayer A is entitled to an income tax deduction for that amount.

Commissioner of Taxation
27/5/93

Previously issued as Draft TD 93/D40

References

ATO references:
NO CAN AC/ 752 Pt 8

ISSN 1038 - 8982

Subject References:
art gifts;
allowable deductions;
donations;
gifts;
tax related expenses;
valuation of property

Legislative References:
ITAA 36;
ITAA 51(1);
ITAA 69;
ITAA 78(aa);
ITAA 78(6B)

TD 93/92 history
  Date: Version: Change:
You are here 27 May 1993 Original ruling  
  22 June 2011 Consolidated ruling Addendum

Back to top