Income Tax Assessment Act 1997
CHAPTER 6
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THE DICTIONARY
PART 6-1
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CONCEPTS AND TOPICS
Division 977
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Realisation events, and the gains and losses they realise for income tax purposes
Trading stock
SECTION 977-35
Disposal of trading stock: gain realised for income tax purposes
977-35(1)
A gain is realised for income tax purposes by a * realisation event consisting of disposal of an item of * trading stock if, and only if:
(a) the item is disposed of, for more than its * cost, in the same income year in which it became part of the trading stock on hand of the entity disposing of it; or
(b) the item is disposed of in a later income year for more than its * value as trading stock of the entity on hand at the start of the later income year.
977-35(2)
The gain that is realised for income tax purposes by the event is the difference between the amount included in the entity's assessable income because of the disposal and:
(a) the amount that the entity can deduct for the item's * cost; or
(b) the item's * value as * trading stock on hand at the start of the later income year;
977-35(3)
If a provision of this Act reduces the gain that would, apart from that provision, be * realised for income tax purposes by the event, the amount that is included in the assessable income of the entity because of the disposal is reduced by the same amount.
View history note
Hide history noteA gain is realised for income tax purposes by a * realisation event consisting of disposal of an item of * trading stock if, and only if:
(a) the item is disposed of, for more than its * cost, in the same income year in which it became part of the trading stock on hand of the entity disposing of it; or
(b) the item is disposed of in a later income year for more than its * value as trading stock of the entity on hand at the start of the later income year.
977-35(2)
The gain that is realised for income tax purposes by the event is the difference between the amount included in the entity's assessable income because of the disposal and:
(a) the amount that the entity can deduct for the item's * cost; or
(b) the item's * value as * trading stock on hand at the start of the later income year;
as appropriate.
977-35(3)
If a provision of this Act reduces the gain that would, apart from that provision, be * realised for income tax purposes by the event, the amount that is included in the assessable income of the entity because of the disposal is reduced by the same amount.