ATO Interpretative Decision
ATO ID 2002/326 (Withdrawn)
Income Tax
Gifts/Contributions - Deductibility of gifts purchased more than 12 months prior to giftingFOI status: may be released
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This decision has been withdrawn as it does not correctly reflect the ATO viewThis document incorporates revisions made since original publication.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you will need to ensure that the relevant provisions referred to in the decision have not been amended or repealed.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 a taxpayer entitled to a deduction under section 30-15 of the Income Tax Assessment Act 1997 (ITAA 1997) for gifting property which was purchased more than 12 months prior to gifting?
Decision
Yes. The taxpayer is entitled to a deduction under section 30-15 of the ITAA 1997 provided the value of the property purchased more than 12 months prior to gifting is valued by the Commissioner of Taxation at more than $5,000.
Facts
The taxpayer is the executor of a deceased estate. As the executor, the taxpayer has made a gift of the deceased's property to a higher education institution after 1 July 1999.
The property was purchased by the deceased more than 12 months prior to the executor gifting the property to the higher education institution.
The property is not trading stock of the deceased.
The higher education institution qualifies as a fund, authority or institution to which deductible gifts or contributions can be made.
The property to be gifted has not been valued by the Commissioner of Taxation.
Reasons for Decision
Division 30 of the ITAA 1997 provides an income tax deduction for gifts or contributions made to a fund, authority or institution.
Section 30-15 of the ITAA 1997 provides for the types of gifts or contributions which are deductible. The deductible gifts or contributions are:
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- money; or
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- property (including trading stock of the donor) that the taxpayer purchased during the 12 months before making the gift; or
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- property valued by the Commissioner of Taxation at more than $5,000.
As the property to be gifted was purchased more than 12 months prior to gifting, the property is a deductible gift if it is valued by the Commissioner of Taxation at more than $5,000.
Accordingly, the taxpayer must seek a valuation of the property from the Commissioner of Taxation and if the Commissioner's valuation is more than $5,000, then the property is a deductible gift. The amount deductible to the taxpayer is the value of the property as determined by the Commissioner as prescribed by item 1(d) in the "How much you can deduct" column of section 30-15 of the ITAA 1997.
Year of income: Year ending 30 June 2002 Year ending 30 June 2003
Legislative References:
Income Tax Assessment Act 1997
section 30-15
regulation 30-212.03
regulation 30-212.04
regulation 30-212.05
Keywords
Deceased Estates
Executor of deceased estate
Gifts & donations
Gifts to organisations
ISSN: 1445-2782
| Date: | Version: | |
| 22 February 2002 | Original statement | |
| You are here | 22 August 2002 | Archived |
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