CGT assets are personal use assets rather than collectables. These types of assets are used or kept for personal use or enjoyment. You need to see that personal use assets have value for $10,000 or less for CGT purposes.
Personal use assets include:
- electrical goods
- household items.
A personal use asset includes:
- An option or a personal use asset or right
- a debt come from
A CGT event for your personal use or for enjoyment, You are doing other things rather than gaining or producing your assessable income or carrying on a business like making private loan to a taxpayer’s family member or friend
Personal use assets do not contain taxpayers main residence and car or motorcycle.
If you dispose of personal use assets and that would be sold, you will get exemption only if you get $10,000 or less.
All capital losses are not considered on your personal use assets. This means you can not use capital losses on personal used assets to reduce your liability.
CGT doesn’t apply to most depreciating assets like business equipment or items in a rental property for taxable purposes.
Gains or losses made on assessable income or claimed as deductions. However, if you have depreciating assets for private purposes, CGT may apply in this case.