Document ID: chunk:federal_register_of_legislation:C2025C00029:section:4:p7
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 4 (pt 7/12)
Character Range: 1943980–1946532

capital loss for the income year, *capital losses from *collectables can be used only to reduce *capital gains from collectables.
Note: You choose the order in which you reduce your capital gains from collectables by your capital losses from collectables.
Example: Your capital gains from collectables total $200 and your capital losses from collectables total $400. You have other capital gains of $500. You have a net capital gain of $500 and a net capital loss from collectables of $200.
 The losses from collectables cannot be used to reduce the $500 capital gain.
 (2) A collectable is:
 (a) *artwork, jewellery, an antique, or a coin or medallion; or
 (b) a rare folio, manuscript or book; or
 (c) a postage stamp or first day cover;
that is used or kept mainly for your (or your *associate's) personal use or enjoyment.
 (3) These are also collectables:
 (a) an interest in any of the things covered by subsection (2); or
 (b) a debt that arises from any of those things; or
 (c) an option or right to *acquire any of those things.
Note: Collectables acquired for $500 or less are exempt. However, you get an exemption for an interest in one only if the market value of all the interests combined is $500 or less: see Subdivision 118‑A.
 (4) If some or all of a *capital loss from a *collectable cannot be applied in an income year, the unapplied amount can be applied in the next income year for which your *capital gains from *collectables exceed your *capital losses (if any) from collectables.
Example: You have a capital gain from a collectable for the income year of $200 and a capital loss from another collectable of $600.
 Your capital loss from one collectable reduces your capital gain from the other to zero. You cannot apply the remaining $400 of the capital loss in this income year, but you can apply it in a later income year.
 (5) If you have 2 or more unapplied *net capital losses from *collectables, you must apply them in the order you made them.

108‑15  Sets of collectables
 (1) This section sets out what happens if:
 (a) you own *collectables that are a set; and
 (b) they would ordinarily be *disposed of as a set; and
 (c) you dispose of them in one or more transactions for the purpose of trying to obtain the exemption in section 118‑10.
Example: You buy a set of 3 books for $900. You apportion the $900 among each book: see section 112‑30. If the books are of equal value, you have acquired each one for $300.
 If you dispose of each book individually, you would ordinarily obtain the exemption in section 118‑10,