The ATO has advised that it has identified some instances where lifestyle assets, such as artworks and collectables, are not being properly accounted for.
They said that they want to help taxpayers with these kinds of assets to comply and be aware they may be subject to Capital Gains Tax (CGT) on disposal.
They said that it’s important taxpayers are aware that:
- items purchased for more than $500 on or after 20 September 1985 are subject to CGT, even if they are kept mainly for the personal use or enjoyment of your client
- special CGT rules apply to items that form part of a deceased estate
- the date of purchase/auction needs to be accounted for, not the settlement date.
The ATO is currently working with insurance companies to identify owners of these sorts of assets.
If you think that you may be affected, please contact our office.