#EveryoneNeedsaPlan: CGT on Collectables (Artwork | Jewelry)

Most of us are unaware that the federal government taxes capital gains made on “personal use assets” like furniture & clothes, and “collectables” like artwork and jewellery!

• The ATO define “collectables”: artwork, antiques, coin or medallion, rare folio / manuscript or book, postage stamp or “first day cover”
• Only applies to collectables with an initial cost of more than $500 (if under $500, exempt from CGT)
• Capital losses incurred from sale of a “collectable” can only be offset against capital gains from a “collectable”
• Capital gains on assets considered “personal use” (furniture, clothing, piano, etc.) are taxable but only if the initial cost exceeded $10,000
• Inherited personal use assets and collectables are also subject to CGT
• The ATO’s data-matching capabilities with insurers may uncover undisclosed personal use assets and collectables that are subject to CGT – ‘big brother’ is watching .....