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Is the online sale of a personal item considered taxable income

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Hi there,

I received a collectable item from a family member as a gift. I kept the item for some time, but decided to sell it online for $1000. Of course, since I didn't pay for the item this $1000 was all profit.

I very rarely sell anything online. I will mention that I am a sole trader with an ABN, but this item has no relation, nor relevance to my business.

(a) Do I need to declare this $1000 as part of my taxable income?

(b) Hypothetically, if the item was valued at $10,000, would this make any difference?

Thank you in advance
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Hi @sdfry

 

A genuine gift does not form taxable income. Collectables are items you use or keep mainly for the personal use or enjoyment of yourself or your associates. So as for its disposal most personal use assets are exempt from CGT, including your home, car and personal use assets such as furniture. You disregard any capital gain you make from a personal use asset if you acquired it for less than $10,000.

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I would also like to add that the $1000 was transferred from my PayPal account to my business banking account, since they are linked. I'm not sure if this is relevant, or not.
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Hi @sdfry

 

A genuine gift does not form taxable income. Collectables are items you use or keep mainly for the personal use or enjoyment of yourself or your associates. So as for its disposal most personal use assets are exempt from CGT, including your home, car and personal use assets such as furniture. You disregard any capital gain you make from a personal use asset if you acquired it for less than $10,000.