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.


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