Income Tax Assessment Act 1997

CHAPTER 3 - SPECIALIST LIABILITY RULES  

PART 3-45 - RULES FOR PARTICULAR INDUSTRIES AND OCCUPATIONS  

Division 385 - Primary production  

Subdivision 385-E - Primary producer can elect to spread or defer tax on profit from forced disposal or death of live stock  

Operative provisions

SECTION 385-105   Election to spread tax profit over 5 years  

385-105(1)    
You can elect:

(a) to include in your assessable income for the ^* disposal year the ^* proceeds of the disposal or death, reduced by the ^* tax profit on the disposal or death; and

(b) to include 20 % of the tax profit on the disposal or death in your assessable income for the disposal year; and

(c) to include 20 % of the tax profit on the disposal or death in your assessable income for each of the next 4 income years.

For rules about the making and effect of an election, see Subdivision 385-H .

385-105(2)    
The disposal year is the income year in which you dispose of the ^* live stock, or they die, as mentioned in subsection 385-100(1).

385-105(3)    
The tax profit on the disposal or death is any amount remaining after subtracting from the ^* proceeds of the disposal or death the sum of:

(a) the amount paid or payable for the purchase of as many of the ^* live stock as you purchased during the income year; and

(b) the ^* value of the rest of the live stock as ^* trading stock on hand at the start of the income year.