Document ID: chunk:federal_register_of_legislation:C2025C00029:section:6:p2
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 6 (pt 2/20)
Character Range: 1558849–1561499

horse opening value is:
 (a) if the horse has been your *live stock ever since the start of the income year—its *value as *trading stock at the start of the income year; or
 (b) otherwise—the horse's base amount (see subsection (3)).
 (2) The horse reduction amount is worked out as follows:
 (a) for female horses under 12 years of age:

 (b) for any male horse:
 (3) In this section:
base amount is the lesser of:
 (a) the horse's *cost; and
 (b) the horse's *adjustable value when it most recently became your *live stock.
breeding days is the number of whole days in the income year since you most recently began to hold the horse for breeding.
nominated percentage is any percentage, up to 25%, you nominate when you make the election in section 70‑60.
reduction factor is the greater of:
 (a) 3; and
 (b) the difference between 12 and the horse's age when you most recently began to hold it for breeding.

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

Guide to Subdivision 70‑D

70‑75  What this Subdivision is about

      Your assessable income includes the market value of an item of trading stock if you dispose of it outside the ordinary course of business or it ceases to be trading stock in certain other circumstances.
      This Subdivision treats certain other assets in the same way as trading stock.

Table of sections
70‑80 Why the rules in this Subdivision are necessary

Operative provisions
70‑85 Application of this Subdivision to certain other assets
70‑90 Assessable income on disposal of trading stock outside the ordinary course of business
70‑95 Purchase price is taken to be market value
70‑100 Notional disposal when you stop holding an item as trading stock
70‑105 Death of owner
70‑110 You stop holding an item as trading stock but still own it
70‑115 Compensation for lost trading stock

70‑80  Why the rules in this Subdivision are necessary
 (1) When you dispose of an item of your trading stock in the ordinary course of business, what you get for it is included in your assessable income (under section 6‑5) as ordinary income.
Note: An incorporated body is treated as disposing of an item of its trading stock in the ordinary course of business if the body ceases to exist and disposes of the asset to a company that has not significantly different ownership: see Division 620.
 (2) If an item stops being your trading stock for certain other reasons, an amount is generally included in your assessable income to balance the reduction in trading stock on hand, which is a transaction on revenue account.
 (3) The other reasons for an item to stop being your