Taxation: Tax Implication of Antique Painting, Historical Sculpture, and Sale of Picture by Helen

Running head: TAXATION
Taxation
Name of the Student
Name of the University
Author Note

TAXATION1
1
T1
The issue rising from the present situation is the tax implication of the antique painting that
has been sold by Helen.
Any item that has been acquired by the taxpayer for the purpose of being used personally is
required to be treated as a collectible u/s 108-10 ITAA97. For the purpose of being treated as
an CGT asset collectible needs to be acquired on or after the date of 20th September 1985. In
case it can be proved that the collectible has been acquired in a subsequent date, it will be
treated as a CGT asset and the sale of the same will treated as a CGT event A1 u/s 104-10 of
the ITAA97. However the acquisition of the asset is said to have occurred when the taxpayer
is conferred with the ownership of the same u/s 109-5 of the ITAA97.
In the present instance the painting can be treated as a collectible as the same has been held
by Helen for being used in a personal capacity. However the acquisition of the same has been
affected by Helen’s father prior to the mentioned date. But in this case as the sale has been
affected by Helen the acquisition of the painting by Helen need to be considered. The asset
has been passed on to Helen from his father, actual date of acquisition of the asset by Helen is
not clear. Hence if the asset has been received by Helen prior to the prescribed date it will not
be assessable in her taxable income.
T2
The issue rising from the present situation is the tax implication of the Historical sculpture
that has been sold by Helen.
Any item that has been acquired by the taxpayer for the purpose of being used personally is
required to be treated as a collectible u/s 108-10 ITAA97. For the purpose of being treated as

TAXATION2
an CGT asset collectible needs to be acquired on or after the date of 20th September 1985. In
case it can be proved that the collectible has been acquired in a subsequent date, it will be
treated as a CGT asset and the sale of the same will treated as a CGT event A1 u/s 104-10 of
the ITAA97. However the acquisition of the asset is said to have occurred when the taxpayer
is conferred with the ownership of the same u/s 109-5 of the ITAA97. Collectible me include
any artwork, antique object, coins as well as other similar objects.
In this present situation the historical sculpture needs to be treated as a collectible and the sale
of the same needs to be treated as a CGT gain. The collectible has been acquired by the
taxpayer Helen in the year 1993, hence it can be treated as a CGT asset. While computing the
CGT liability arising from the same, the cost proceed of the sculpture needs to be deducted
by the cost base of the sculpture.
T3
The issue rising from the present situation is the tax implication of the Historical sculpture
that has been sold by Helen.
Any item that has been acquired by the taxpayer for the purpose of being used personally is
required to be treated as a collectible u/s 108-10 ITAA97. For the purpose of being treated as
an CGT asset collectible needs to be acquired on or after the date of 20th September 1985. In
case it can be proved that the collectible has been acquired in a subsequent date, it will be
treated as a CGT asset and the sale of the same will treated as a CGT event A1 u/s 104-10 of
the ITAA97. However the acquisition of the asset is said to have occurred when the taxpayer
is conferred with the ownership of the same u/s 109-5 of the ITAA97. Collectible me include
any artwork, antique object, coins as well as other similar objects. Any collectible loss will
required to be treated as an offset against a collectible loss only. In a particular year, if there