A T O home
Legal Database
Search   
for 
 
Access the database 
Browse database
Searches  
View last document
Quick access 
View legislation
View a document
Email Cross Reference Material Previous/Next Section Contents Previous/Next Result
Printable version
Printable
version

Income Tax Assessment Act 1997

CHAPTER 2 - LIABILITY RULES OF GENERAL APPLICATION  

PART 2-25 - TRADING STOCK    View history reference

Division 70 - Trading stock    View history reference

Subdivision 70-D - Assessable income arising from disposals of trading stock and certain other assets    View history reference

SECTION 70-80  Why the rules in this Subdivision are necessary  

 View history reference [No equivalent]

70-80(1)  

When you dispose of an item of your trading stock in the ordinary course of business, what you get for it is included in your assessable income (under section 6-5 ) as ordinary income.

Note:

An incorporated body is treated as disposing of an item of its trading stock in the ordinary course of business if the body ceases to exist and disposes of the asset to a company that has not significantly different ownership: see Division 620 .

70-80(2)  

If an item stops being your trading stock for certain other reasons, an amount is generally included in your assessable income to balance the reduction in trading stock on hand, which is a transaction on revenue account.

70-80(3)  

The other reasons for an item to stop being your trading stock are:


(a) you dispose of it outside the ordinary course of business; or
 View history reference


(b) interests in it change; or


(c) you die; or


(d) you stop holding it as trading stock.


 



This information is provided by CCH Australia Limited. View the disclaimer and notice of copyright.
Top of page
More information on page