Taxation Determination TD 92/195







This Determination, to the extent that it is capable of being a 'public ruling' in terms of Part IVAAA of the Taxation Administration Act 1953, is a public ruling for the purposes of that Part. Taxation Ruling TR 92/1 explains when a Determination is a public ruling and how it is binding on the Commissioner. Unless otherwise stated, this Determination applies to years commencing both before and after its date of issue. | 1. No. Section 79C of the Income Tax Assessment Act 1936 (the Act) provides that the making of any gift under section 78 of the Act - which includes a gift made under the Taxation Incentives for the Arts Scheme - can neither create nor increase a loss for carrying forward to a subsequent income tax year. | Example: Z has assessable income of $30,000 during a particular year of income. During the same year Z donated a painting valued at $35,000 to a public art gallery under the Taxation Incentives for the Arts Scheme. The painting was from Z's private collection and did not form part of Z's trading stock. Z had no other deductible expenses for that year of income. | Z's taxable income for the particular year of income would be reduced to nil. The unused balance of $5,000 cannot be carried forward to a subsequent year. | Commissioner of Taxation 26/11/92 | Previously issued as Draft TD92/D122


Legislative references: ITAA 78(1)(aa); ITAA 79C
Subject references: carry-forward loss; donation; gift; Taxation Incentives for the Arts Scheme