CGT and Classic cars

[e72phil]

I have heard several people mention that there is an exemption on CGT for sales of "classic" cars.

Does anyone have any factual knowledge or experience on this ?

A Google search on CGT exemptions yielded this excerpt:

" Light motor vehicles
Gains on light motor vehicles, such as cars, station wagons and utilities, are exempt.

Personal use assets and collectibles
Gains on personal use assets acquired for $10,000 or less are exempt. These are assets for the personal use and enjoyment of the taxpayer and their family — clothing, white goods, furniture, sporting equipment, cameras, boats and so on. Cars are excluded. (this appears to conflict the above statement ?)

This concession does not cover works of art, jewellery, rare books, stamps and coins and antiques (called collectibles)."

Do Classic cars fall into the category of : "light motor vehicles" ? or are they "collectibles"

[Andrew B]

Phil perhaps you should change your avatar !

And yes they are definitely light.

Sorry doesn't help with your query...

[griffiths_r]

phil

cars do NOT incur CGT...

http://www.ato.gov.au/corporate/content.asp?doc=/content/00208572.htm&page=12&H12

exemptions include "your car (that is, a motor vehicle designed to carry a load of less than one tonne and fewer than nine passengers), motorcycle or similar vehicle"

[SIR70t]

I would love to own one though that did

[IXXI72]

According to the media & Gov we avoided the CGT didn't we?



Or is that the GFC, I don't know too many TLA's for me.

[Terminator]

I have been advised that companies owning cars not used as work vehicles by the business or the owner are being targeted as are Superannuation funds that hold cars.....gee I just bought a 69S and an M# CSL I think.

Not sure how they will test the first part of this however.

[e72phil]

Rich, yes I read a lot of stuff on the ATO pages but they seem to contradict themselves re cars.

I tend to run with the arguement that these are cars that do not carry heavy loads.

C;yde am vry interested in your comments re Super funds and car ownership. Seesm there are ore than a few "exceptions" floating around out there re CGT and cars.

Anymore accountant member out there that wuld liek to comment ? I am sure it a subject close to many hearts in this group.

[griffiths_r]

can't offer more than "I am a chartered accountant, and our cars do not attract CGT"...

[griffiths_r]

that said, anything held by a super fund or business or company will be treated differently...

[carl888]

Hi Phil,

I can answer this for you, but would prefer to discuss it personally

Perhaps we can catch up at the run on the 26th?

Regards,

Carl.

[griffiths_r]

Hi Phil,

I can answer this for you, but would prefer to discuss it personally

Perhaps we can catch up at the run on the 26th?

Regards,

Carl.

carl you make me want to put a disclosure along the lines of "I am not a tax expert and specific advice should be sought from a registered tax agent in relation to your specific circumstances"!!!!!

[e72phil]

Hi Carl,

good to hear from you. Are you back in OZ yet ?

I will try to make the 26th run and talk with you then.

Plenty of other stuff to catch up on then as well.

[Jeff Eelkema]

Phil

Given all the input costs with owning and restoring classic cars, how is it possible to make a capital gain?

[e72phil]

Good point Jeff, but its my understanding even if we had to pay CGT on these cars, the input costs are NOT deductible.

[griffiths_r]

Good point Jeff, but its my understanding even if we had to pay CGT on these cars, the input costs are NOT deductible.

you start getting into the tricky stuff now Phil - and this may have changed since i did my tax exams 8 years ago... input costs for CGT'able assets would possibly be included in the capital cost base of the asset to the extent that they are capital in nature. So you might be able to include the cost of the respray in how much the asset cost you, but not the cost of petrol. thereby reducing the amount of 'gain' you make... and the applicable CGT...

talk to your tax agent!!!!!!!! have you ever seen how many pages there are in the rules governing CGT?!? if you want tax reform, that'd be a great place to start!!!!



cheers

rich