Commonwealth Consolidated Acts Commonwealth Consolidated Acts(1) A gain is realised for income tax purposes by a * realisation event consisting of disposal of an item of * trading stock if, and only if:
(a) the item is disposed of, for more than its * cost, in the same income year in which it became part of the trading stock on hand of the entity disposing of it; or
(b) the item is disposed of in a later income year for more than its * value as trading stock of the entity on hand at the start of the later income year.
(2) The gain that is realised for income tax purposes by the event is the difference between the amount included in the entity's assessable income because of the disposal and:
(a) the amount that the entity can deduct for the item's * cost; or
(b) the item's * value as * trading stock on hand at the start of the later income year;
as appropriate.
(3) If a provision of this Act reduces the gain that would, apart from that provision, be * realised for income tax purposes by the event, the amount that is included in the assessable income of the entity because of the disposal is reduced by the same amount.