Tax Law Improvement Act 1997 (121 of 1997)

Schedule 5   Trading stock (and some related matters)

Part 3   Consequential amendment of the Income Tax Assessment Act 1936

86   At the end of section 160ZB

Add:

(7) When an item already owned by a taxpayer becomes trading stock of the taxpayer:

(a) a capital gain does not accrue to the taxpayer; and

(b) the taxpayer does not make a capital loss;

if the taxpayer elects under paragraph 70-30(1)(a) of the Income Tax Assessment Act 1997 to be treated as having sold the item for its cost (as worked out under that section).


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