Collectibles

There is a special rule that applies to capital losses and collectibles. Unlike other asset classes, you can only offset a capital loss in collectibles against a capital gain in collectibles, that same year or in later years.

If you made a capital loss on some shares you could offset that against a capital gain on a property or something else. You should note that capital gains tax works a little differently with collectibles.

If a collectible cost less than $500 (less any input tax credit), capital gains and losses are ignored. These collectibles include an art work, a rare book, jewellery, a coin, a stamp, an antique or a set of one of these.

An antique is an item of artistic and historical interest that is more than 100 years old at the date of disposal.

Collectibles vs personal use assets

Personal use assets such as household goods are usually exempt from CGT. A personal use asset is a non-collectible asset other than land or buildings, used or kept for the use or enjoyment of the taxpayer or his or her associate.

Personal use assets that cost less than $10,000 to acquire are exempt from CGT. Where a personal use asset was acquired for more than $10,000 any gains on disposal may be subject to the usual CGT rules.

A capital loss from a personal use asset is disregarded.