ATO Interpretative Decision
ATO ID 2002/577 (Withdrawn)
Income Tax
Deductibility of gift of property purchased more than 12 months prior to the gifting - value less than $5000FOI status: may be released
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This ATO ID is withdrawn as the Tax Office publication GiftPack for deductible gift recipients & donors contains the Tax Office view on the deductibility of donations under Division 30 of the Income Tax Assessment Act 1997.This document incorporates revisions made since original publication. View its history and amending notices, if applicable.
This ATOID provides you with the following level of protection:
If you reasonably apply this decision in good faith to your own circumstances (which are not materially different from those described in the decision), and the decision is later found to be incorrect you will not be liable to pay any penalty or interest. However, you will be required to pay any underpaid tax (or repay any over-claimed credit, grant or benefit), provided the time limits under the law allow it. If you do intend to apply this decision to your own circumstances, you will need to ensure that the relevant provisions referred to in the decision have not been amended or repealed. You may wish to obtain further advice from the Tax Office or from a professional adviser.
Issue
Is the taxpayer entitled to a deduction under section 30-15 of the Income Tax Assessment Act 1997 ('ITAA 1997') for a gift of property owned for more than 12 months if it has a value of less than $5000?
Decision
No. The taxpayer is not entitled to a deduction under section 30-15 of the ITAA 1997 for a gift of property owned for more than 12 months if the property has a value of less than $5000.
Facts
The taxpayer purchased property.
The taxpayer gifted this property to a deductible gift recipient more than 12 months after purchase.
The property's market value on the day the property was gifted was less than $5000 and the Commissioner accepts that as the property's value.
Reasons for Decision
Division 30 of the ITAA 1997 provides an income tax deduction for gifts or contributions made to a deductible gift recipient.
Section 30-15 of the ITAA 1997 deals with the types of gifts or contributions that are deductible. The types of gifts or contributions include:
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- property that the taxpayer purchased during the 12 months before making the gift; and
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- property valued by the Commissioner of Taxation at more than $5000 if the property was purchased by the taxpayer more than 12 months before making the gift.
As the taxpayer's property was purchased more than 12 months prior to gifting and the property's value (as determined by the Commissioner) is less than $5000, the taxpayer will not be entitled to a deduction under section 30-15 of the ITAA 1997.
Date of decision: 25 February 2002Year of income: Year ending 30 June 2002
Legislative References:
Income Tax Assessment Act 1997
Division 30
section 30-15
Keywords
Gifts & donations
Deductions & expenses
ISSN: 1445-2782
| Date: | Version: | |
| 25 February 2002 | Original statement | |
| You are here | 14 December 2007 | Archived |