INCOME TAX ASSESSMENT ACT 1997

CHAPTER 2 - LIABILITY RULES OF GENERAL APPLICATION  

PART 2-5 - RULES ABOUT DEDUCTIBILITY OF PARTICULAR KINDS OF AMOUNTS  

Division 30 - Gifts or contributions  

Subdivision 30-C - Rules applying to particular gifts of property  

Working out the amount you can deduct for a gift of property

SECTION 30-215   How much you can deduct  

30-215(1)  
This section contains the rules for working out how much you can deduct for a gift of property that you make to a recipient covered by item 4, 5 or 6 of the table in section 30-15 .

30-215(2)  


The general rule is that the amount you can deduct for a gift of this kind is the average of the * GST inclusive market values (as reduced under subsection 30-15(3) if that subsection applies) specified in the written valuations you got from the approved valuers.
Note:

In some situations you must reduce the amount you can deduct: see section 30-220 .

30-215(3)  


The exceptions to the general rule are set out in this table:


Amount you can deduct for a gift of property
Item In this case: The amount you can deduct is:
1 Section 30-205 (which is about the proceeds of the sale being assessable) applies, and you bought the property the amount you paid for the property, reduced by the amount of any *input tax credit to which you are or were entitled for your *acquisition of the property
.
2 Section 30-205 (which is about the proceeds of the sale being assessable) applies, and you created or produced the property so much of the cost of creation or production as you would have been able to deduct if you had sold the property, reduced by the amount of any *input tax credit to which you are or were entitled for your *acquisitions to the extent that they were made for the purpose of creating or producing the property
.
3 Neither of cases 1 and 2 applies, and you acquired the property: the lesser of the amount you paid for the property and:
(a) less than one year before making the gift (otherwise than by inheriting it); or (a) if the average of the written valuations you got fairly represents the *GST inclusive market value (as reduced under subsection (4) if that subsection applies) of the property on the day you made the gift - that average; or
(b) for the purpose of giving it away; or (b) if it does not - the *GST inclusive market value (as reduced under subsection (4) if that subsection applies) of the property on the day you made the gift
(c) subject to an *arrangement that the property would be given away
.
4 None of cases 1 to 3 applies, and the average of the written valuations you got does not fairly represent the *market value of the property on the day you made the gift the *GST inclusive market value (as reduced under subsection (4) if that subsection applies) of the property on the day you made the gift

30-215(4)  


For the purposes of items 3 and 4 of the table in subsection (3), the * GST inclusive market values of the property in question are reduced by 1/11 if you would have been entitled to an * input tax credit if:


(a) you had * acquired the property at the time you made the gift; and


(b) your acquisition had been for a * creditable purpose.


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