Capitol Gains Tax On Coins In Australia

Given that that's a valid explanation, is there any way that the ATO can disprove it?

ebay & pay pal automatically hands over all your ebay sales details & pay pals account records to the ATO when you have earned over $20,000 in one financial year.

So you have to earn over $75,000 before GST becomes an issue.

So long as I do not sell a coin for over $500 profit I have no issues with CGT?

Interesting question enworb! Hope we get an answer. I really need to know!

It is possible for ATO to employ a person to search ebay but there would have to be a lot of money involved for the job to pay for itself.

But it that was the case this would be big news all over the place!

I have been told that my computer can be taken by ATO at anytime especially if center link has a need.

We confess our sins to center link every 3 months and I add they have been very nice about it all to us for some time now.

Here's the ATO info page on CGT and inherited items. Quick summary: if the person from whom it came owned it prior to 1985, you need to obtain a valuation of the item as of their date of death (or the date they gave it to you); this will be deemed to be your "purchase price", even though you did not yourself pay that money. If they acquired it after 1985, then they should have kept CGT records of when and how much and any CGT you pay is based on what they paid for the item back when they bought it, just as if you had bought it yourself. If they didn't, well, too bad for you.

Without records, money gained from sale of assets looks just like any other income: 100% of that income is taxable unless you can prove otherwise. So the moral of the story is, if you own valuable coins and want to minimize your tax (or the tax your heirs have to pay) when your coin collection or part thereof is sold off, keep records of how much you paid for things, and when you bought them.

Fortunately for me, I own very few $500-plus items, and I've never tried to sell one off. I doubt I could lay my hands on original receipts for specific coins on demand, but I do have records: my coin database, in which I've recorded the price paid for most of the coins I've acquired since 1990 (I certainly didn't own any $500-plus coins prior to 1985). I have no idea if this kind of record-keeping would be good enough for tax purposes.

The best way of selling of your valuable coins is to sell them to a deal with cash trade, the good side is no one knows, the bad side is you do not get what you expected.

Ditto for the "Cash is King" comment. :-)

As a direct result of the introduction of CGT, I have avoided buying coins of more than $500 in value.
I would have over 100 coins that would be valued at more than $100, but a lot less than $500. Almost all of these would have been acquired as single items, over a period of decades.

So how will I dispose of them all, near the end of my life?
Simple. I HAVE BEEN already giving my coins in dribs and drabs to my kids over recent years. They can keep them, or sell them as single items, as they so wish. I have done the same thing with cars and furniture.

So where do you stand when you sell your collection out of yor estate? That problem does not arise for me. I have been in the process of actioning my Last Will and Testament in small bits and pieces for some years.

My daughter still puts her arms around my neck, hugs me and says: "I love you dad!". At least, I know the reason why.