Commonwealth Consolidated Acts Commonwealth Consolidated Acts(1) This section contains the rules for working out how much you can deduct for a gift of property that you make to a recipient covered by item 4, 5 or 6 of the table in section 30 - 15.
(2) The general rule is that the amount you can deduct for a gift of this kind is the average of the * GST inclusive market values (as reduced under subsection 30 - 15(3) if that subsection applies) specified in the written valuations you got from the approved valuers.
Note: In some situations you must reduce the amount you can deduct: see section 30 - 220.
(3) The exceptions to the general rule are set out in this table:
Amount you can deduct for a gift of property | ||
Item | In this case: | The amount you can deduct is: |
1 | Section 30 - 205 (which is about the proceeds of the sale being assessable) applies, and you bought the property | the amount you paid for the property, reduced by the amount of any * input tax credit to which you are or were entitled for your * acquisition of the property |
2 | Section 30 - 205 (which is about the proceeds of the sale being assessable) applies, and you created or produced the property | so much of the cost of creation or production as you would have been able to deduct if you had sold the property, reduced by the amount of any * input tax credit to which you are or were entitled for your * acquisitions to the extent that they were made for the purpose of creating or producing the property |
3 | Neither of cases 1 and 2 applies, and you acquired the property: (a) less than one year before making the gift (otherwise than by inheriting it); or (b) for the purpose of giving it away; or (c) subject to an * arrangement that the property would be given away | the lesser of the amount you paid for the property and: (a) if the average of the written valuations you got fairly represents the * GST inclusive market value (as reduced under subsection (4) if that subsection applies) of the property on the day you made the gift--that average; or (b) if it does not--the * GST inclusive market value (as reduced under subsection (4) if that subsection applies) of the property on the day you made the gift |
4 | None of cases 1 to 3 applies, and the average of the written valuations you got does not fairly represent the * market value of the property on the day you made the gift | the * GST inclusive market value (as reduced under subsection (4) if that subsection applies) of the property on the day you made the gift |
(4) For the purposes of items 3 and 4 of the table in subsection (3), the * GST inclusive market values of the property in question are reduced by 1 / 11 if you would have been entitled to an * input tax credit if:
(a) you had * acquired the property at the time you made the gift; and
(b) your acquisition had been for a * creditable purpose.