Division 70 - Trading stock  

Subdivision 70-D - Assessable income arising from disposals of trading stock and certain other assets  

Operative provisions

SECTION 70-90   Assessable income on disposal of trading stock outside the ordinary course of business  


If you dispose of an item of your *trading stock outside the ordinary course of a *business:

(a) that you are carrying on; and

(b) of which the item is an asset;

your assessable income includes the *market value of the item on the day of the disposal.


If the disposal is the giving of a gift of property by you for which a valuation under section 30-212 is obtained, you may choose that the *market value is replaced with the value of the property as determined under the valuation. You can only make this choice if the valuation was made no more than 90 days before or after the disposal.

Any amount that you actually receive for the disposal is not included in your assessable income (nor is it *exempt income).

Note 1:

In the case of an asset covered by section 70-85 (which applies this Subdivision to certain other assets), the disposal will usually involve disposing of the land of which the asset forms part.

Note 2:

For certain disposals of live stock by primary producers, special rules apply: see Subdivision 385-E .

Note 3:

If the disposal is by way of gift, you may be able to deduct the gift: see Division 30 (Gifts).

Note 4:

If the disposal is of trees, you can deduct the relevant portion of your capital costs of acquiring the land carrying the trees or of acquiring a right to fell the trees: see section 70-120 .

Note 5:

This section and section 70-95 also apply to disposals of certain items on hand at the end of 1996-97 that are not trading stock but were trading stock as defined in the Income Tax Assessment Act 1936 : see section 70-10 of the Income Tax (Transitional Provisions) Act 1997 .


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