Deductibility of gift of property purchased more than 12 months prior to the gifting - value less than $5000

Is the taxpayer entitled to a deduction under section 30-15 of the Income Tax Assessment Act 1997 ('ITAA 1997') for a gift of property owned for more than 12 months if it has a value of less than $5000?

No. The taxpayer is not entitled to a deduction under section 30-15 of the ITAA 1997 for a gift of property owned for more than 12 months if the property has a value of less than $5000.

The taxpayer purchased property.

The taxpayer gifted this property to a deductible gift recipient more than 12 months after purchase.

The property's market value on the day the property was gifted was less than $5000 and the Commissioner accepts that as the property's value.

Division 30 of the ITAA 1997 provides an income tax deduction for gifts or contributions made to a deductible gift recipient.

Section 30-15 of the ITAA 1997 deals with the types of gifts or contributions that are deductible. The types of gifts or contributions include: • property that the taxpayer purchased during the 12 months before making the gift; and • property valued by the Commissioner of Taxation at more than $5000 if the property was purchased by the taxpayer more than 12 months before making the gift.

As the taxpayer's property was purchased more than 12 months prior to gifting and the property's value (as determined by the Commissioner) is less than $5000, the taxpayer will not be entitled to a deduction under section 30-15 of the ITAA 1997.