Private ruling: Deductions for gifts and donations
Published: June 2012
Ruling period: Year ended 30 June 2011
Date scheme commenced: 1 July 2010

Ruling: Q1: Can you claim a deduction for property donated if you obtain a valuation of the property from the Commissioner of over $5000? | A1: Yes.


Relevant legislative provisions: Income Tax Assessment Act 1997 section 30-15.

Reasons for decision: Summary: Section 30-15 of the Income Tax Assessment Act 1997 provides that you may claim a deduction for certain types of gifts or donations made to a DGR that are valued at $2 or more. When this is a gift of property, a deduction is allowed where the property is valued at less than $5000 if it is purchased by you during the 12 months before making the gift. If the property is not purchased within the 12 month period before the gift is made, a deduction will be allowed if the gift is valued by the Commissioner at more than $5000. As you did not purchase the property you have won and subsequently donated, it was not purchased by you within the 12 month period before the donation was made, hence you are required to obtain a valuation from the Commissioner to confirm that the total value of these collective items is more than $5000. Provided that this condition is met, you may claim a deduction for the total value of the items that you donated to the DGR.

Please check this edited version to be sure that there are no details remaining that you think may allow you to be identified. If you have any concerns about this ruling you wish to discuss, you will find our contact details in the fact sheet. | Relevant facts: You were the winner of a prize draw. | You were awarded a collection of prizes. | You donated part of the prizes to a deductible gift recipient (DGR).