Taxation Determination TD 92/124







[Note: This is a consolidated version of this document. Refer to the Tax Office Legal Database (http://law.ato.gov.au) to check its currency and to view the details of all changes.]: 1. Land is treated as trading stock for income tax purposes if: | 2. Both the required purpose and the business activity must be present before land is treated as trading stock. The business activity is taken to have commenced when a taxpayer embarks on a definite and continuous cycle of operations designed to lead to the sale of the land. | 3. It is not necessary that the acquisition of land be repetitive. A single acquisition of land for the purpose of development, subdivision and sale by a business commenced for that purpose would lead to the land being treated as trading stock. | Note: the Addendum to this Determination that issued on 7 April 2004 applies on and from 1 July 1997. | Commissioner of Taxation 16/07/92


Related rulings: TD 92/125 TD 92/126 TD 92/127 TD 92/128
Legislative references: ITAA 25(1)
Subject references: land development trading stock