Taxation Determination

TD 92/161W

Income tax: property development: if land originally acquired (before 20 September 1985) and used as a farm, is later ventured into a business of subdivision, development and sale, how are the proceeds on the sale of a block returned as assessable income?

  • Please note that the PDF version is the authorised version of this withdrawal notice.
    This document has changed over time. View its history.

FOI status:

may be releasedFOI number: I 1213336

Notice of Withdrawal

Taxation Determination TD 92/161 is withdrawn with effect from today.

1. Taxation Determination TD 92/161 provides that where land originally acquired and used as a farm, is later subdivided, developed and sold, the net profit on the sale of land is assessable as ordinary income.

2. Taxation Determination TD 92/161 is withdrawn with effect from 1 July 1997 because of the introduction of section 70-30 into the Income Tax Assessment Act 1997. Section 70-30 provides for valuing items of property owned by a taxpayer, but not held as trading stock, to be valued at either cost or market value once the property starts being held as trading stock.

Commissioner of Taxation
7 April 2004


ATO references:

ISSN 1038 - 3158

Related Rulings/Determinations:

TD 92/124
TD 92/125
TD 92/126
TD 92/127
TD 92/128
TR 92/3

Subject References:
land development
trading stock

Legislative References:
ITAA 25(1)

Case References:
St. Hubert's Island Pty Ltd v. FC of T
(1977-78) 138 CLR 210
78 ATC 4104
8 ATR 452

John v. FC of T
(1989) 166 CLR 417
89 ATC 4101
20 ATR 1

A.R.M. Constructions Pty Ltd v. FC of T
87 ATC 4790
19 ATR 337

TD 92/161W history
  Date: Version: Change:
  1 October 1992 Original ruling  
You are here 7 April 2004 Withdrawn