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1. If the collectibles were acquired before 20 Sep 1985, it will be exempt from capital gains tax when sold, hence only the sale of a collectable that was purchased after 20 September 1985 may attract a capital gain.
2. If the item was purchased for less than $500, the gain or loss is disregarded, unless it is part of a set and the set itself costs more than $500.
3. If the collectibles were inherited from a deceased person, if there is no evidence to indicate when the deceased began accumulating the collectables or when that activity ceased. The Commissioner considers that it would be reasonable to assume that the collectables were acquired over the deceased person's lifetime. If the deceased did not keep any records or the cost base to the deceased person cannot be ascertained, the Commissioner will accept the market value on the date of death as the cost base.
4. You may be able to apply the general CGT discount to the capital gains if the collectibles are held for more than a year. |
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