Private ruling: Deduction for gift of artwork made under Cultural Gifts Program
Published: September 2012
Ruling period: Year ended 30 June 2011. | Year ended 30 June 2012. | Year ending 30 June 2013. | Year ending 30 June 2014. | Year ending 30 June 2015.
Date scheme commenced: 1 July 2010.

Ruling: Q1: Can you apportion your deduction for your gift of artwork over more than one income year? | A1: No.

Relevant facts and circumstances: You donated artwork in the 2010-11 income year. Your donation was certified as eligible under the Cultural Gifts Program. You lodged your 2010-11 income tax return prior to submitting the apportionment election form to the Cultural Gifts Program Secretariat.

Relevant legislative provisions: Income Tax Assessment Act 1997 Subdivision 30-DB.

Reasons for decision: Summary: Under Subdivision 30-DB of the Income Tax Assessment Act 1997 (ITAA 1997), you can make a written election to spread the tax deduction for a gift under the Cultural Gifts Program over a period of up to five years. If you want to spread the deduction, you must complete the approved form for apportionment of cultural gifts. A copy of the completed election form must be sent to the Office of the Arts before you lodge your income tax return for the year the gift was made. In your case, you did not lodge your completed election form before lodging your income tax return for the year the gift was made. Therefore, you have not met all the requirements of subdivision 30-DB of the ITAA 1997 and you cannot spread the deduction over more than one income year. The entire deduction must be included in your income tax return in the year that you made the donation.

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