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Tax Incentives for Museums and Cultural Heritage - PDF

   

Added on  2021-06-16

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Taxation

INTRODUCTIONCapital gain tax is the tax an individual is required to pay on the profits made from increasingvalue of acquired assets between the purchase time and selling time. Property or real estate isone of those asset types that highly attract this type of tax, which is gathered by the FederalGovernment by Australian Taxation Office (ATO). By considering this aspect, an individualmight have to pay CGT, if they earn profit while selling or disposing a personal assets orbelongings for £6,000 or more than this (Auerbach and Hassett, 2015). Possessions which aretaxable are inclusive of jewellery, matching vases, antiques, coins, paintings, stamps, orchessmen. Capital Gain Tax is not considered as a separated tax, along with this the capitalgain or loss is added in the assessable income of taxpayer and is adhered to the assessableincome of taxpayer. An engagement ring which costs $5000A collectable includes an artwork,a coin or medallion, jewellery, an antique or manuscripts,sheets or books which are rare, that is utilized or kept predominantly for personal satisfactionor use. Under the Subsection 108-10(2) of the ITAA 1997, it is given that jewellery that iskept or utilized predominantly for personal satisfaction or use is said to be collectable.Further, the engagement ring which is valued at $5,000 is considered as collectable,according to the s 108-10(2), ofITAA97 contains jewellery and ornaments in its meaning(Jacob, 2018). In accordance with ITAA 97, sec 118-10(1), a capital gain or loss, anindividual makes in a collectable manner is overlooked if the initial part of its base of the costis less than $500. As per the ITAA 97, sec 108-10(1), working on the capital gain or loss for agiven income year, wherein capital losses held from collectables can be solely used tominimize capital gains from collectablesShares in BHPAssets which do not reduce in collectable definitions and own use assets are entitled tocapital gain tax, unless and until they are particularly exempted. these assets are inclusive ofthe lease, real estate, rights and goodwill. An individual is required to keep records of suchCGT taxes. Any investment generating affirmative returns is subjected and entitled to CGT(Hemels, 2017). If an individual purchases share at a different price and sell at a differentprice, then the difference is stated at capital gain or loss. In a situation where individual gains

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