Rugby Memorabilia As Collectables

This FAQ article is based on tax law for the year ending 29 February 2024.

1. The Problem / Facts

Can rugby memorabilia be capitalised and depreciated in a business?

2. Applicable Law 

Income Tax Act, Eighth Schedule; section 11(e)

3. Application of the Law to the Facts

Collectables are included in the definition of an asset; hence, they are considered capital. Depreciation applies when the asset undergoes wear and tear during its use in the taxpayer's trade. Given my understanding of how memorabilia and collectibles are typically treated, they are unlikely to meet this definition.

4. Conclusion  

Memorabilia and collectibles are eligible for capitalization but are unlikely to qualify for depreciation.


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