INCOME TAX ASSESSMENT ACT 1997

CHAPTER 2 - LIABILITY RULES OF GENERAL APPLICATION  

PART 2-25 - TRADING STOCK  

Division 70 - Trading stock  

Subdivision 70-C - Accounting for trading stock you hold at the start or end of the income year  

Special valuation rules

SECTION 70-55   Working out the cost of natural increase of live stock  

70-55(1)  
The cost of an animal you hold as *live stock that you acquired by natural increase is whichever of these you elect:


(a) the actual cost of the animal;


(b) the cost prescribed by the regulations for each animal in the applicable class of live stock.

70-55(2)  
However, if you incur a service fee for insemination and, as a result, acquire a horse by natural increase, its cost is the greater of:


(a) the amount worked out under subsection (1); and


(b) the part of the service fee that is attributable to your acquiring the horse.

70-55(3)  
An election under this section must be made by the time you lodge your *income tax return for the income year in which you acquired the animal. However, the Commissioner can allow you to make it later.


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