Commonwealth Consolidated Acts

INCOME TAX ASSESSMENT ACT 1997 - SECT 977.40

  (1)   A gain is realised for income tax purposes by a * realisation event that happens to an item of * trading stock and consists of the ending of an income year if, and only if, the * value of the item, as trading stock of an entity on hand at the end of that income year, is greater than:

  (a)   its * cost, if it became part of the trading stock on hand of the entity during that income year; or

  (b)   otherwise, its value as trading stock of the entity on hand at the start of that income year.

  (2)   The gain that is realised for income tax purposes by the event is the difference between the * value of the item, as * trading stock of the entity on hand at the end of that income year 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 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:

  (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 income year;

as appropriate, is increased by the same amount.