Is it tax deductible for obtaining Valuations for personnal assets (Coins, Stamps)?

Discussion in 'Accounting & Tax' started by TopCat, 13th Apr, 2020.

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  1. TopCat

    TopCat Well-Known Member

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    Like many, I have a collections of many things including stamps and coins.

    If I decide to sell any (likely a coin / stamp dealer), I would like to get a valuation(s) before selling (then going with the best offer / value). Can I claim on tax the valuation and / or selling fees ftom the dealer / auction house?
     
  2. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Plus Member

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    No.
    At best capital expenses
     
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  3. Paul@PFI

    [email protected] Tax Accounting + SMSF Business Plus Member

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    The valuation costs would reduce the total profit. Any net gain is only 50% taxable. Hence 50% of the valuation cost is effectively lost also
     
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  4. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Plus Member

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  5. Paul@PFI

    [email protected] Tax Accounting + SMSF Business Plus Member

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    Ah yes. It depends if the item is a collectable of course. A coin which has its value determined by something other than its face value or appriased by being rare may or may not be a collectable

    eg A1kg silver coin may not be a collectable where its value is determined by spot weight. This comes up with smsfs. But a roman coin may well be a collectable.

    Generally a collectable includes art, jewellery, antiques, coin, medallion, stamp including a first day cover or a rare book, manuscript or folio. Providing each item was acquired for more than $500. However when disposed of as a set the $500 threshold applies to the quantum of those set of items sold as a set if acquired after December 16, 1995. If acquired prior then the set rule can be disregarded. In addition to collectables there are personal use assets to which a $0K cost applies. A similiar use and enjoyment test applies.

    CGT losses on collectables may only offset CGT gains on collectables. A net CGT loss on collectables cannot offset a CGT gain on any other CGT assets.(s108-10)

    And not all apparent collectables are CGT assets. eg Alan Pond is a business tycoon and bids for a rare Van Gogh painting at auction from a deceased estate during an economic downturn. He has intention to retain it in safe custody for resale at a future date when galleries and museums may better afford the item on the open market. The acquistion may be an isolated profit making intention if profit making is the intent and the item is unused for personal use or enjoyment. (Fact : Alan Bond attempted this with Irises but was unable to settle and it was ultimately siezed by Sothebys. He was trading artworks which ultimately was reason he was convincted for fraud. He also manipulated markets to endeavour to obtain increasingingly higher values on art he resold)
     
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