Pt 3-1 inserted by No 46 of 1998.
Div 118 inserted by No 46 of 1998.
SECTION 118-25 Trading stock
(a) your *trading stock; or
(b) if you are a partner, trading stock of the partnership; or
(c) if you are absolutely entitled to the asset as against the trustee of a trust (disregarding any legal disability), trading stock of the trustee.
(a) you start holding as *trading stock a *CGT asset you already own but do not hold as trading stock; and
(b) you elect under paragraph 70-30(1)(a) to be treated as having sold the asset for its cost (worked out under that section).
Paragraph 70-30(1)(a) allows you to elect the cost of the asset, or its market value, just before it became trading stock.
You may make a capital gain or loss if you elect its market value: see CGT event K4.
S 118-25 inserted by No 46 of 1998.