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Rugby Memorabilia As Collectables
- 08 December 2023
- Audit, Reviews & Other Services
- The Tax Faculty Tax Specialist
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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