Document ID: chunk:federal_register_of_legislation:C2004C00927:clause:1_13:p10
Version: federal_register_of_legislation:C2004C00927
Segment Type: clause
Provision Reference: sch 1 cl 13 (pt 10/13)
Character Range: 403015–405613

*trading stock on hand of the transferor, it is an asset of a *business carried on by the transferee; and
 (b) immediately after the item stops being *trading stock on hand of the transferor, the entities that owned it immediately beforehand have (between them) interests in the item whose total value is at least 25% of the item's market value on that day; and
 (c) the *value elected is less than that market value; and
 (d) the item is not a thing in action.

 (7) Also, the election can only be made before 1 September following the end of the *financial year in which the item stops being *trading stock on hand of the transferor. However, the Commissioner can allow the election to be made later.

 (8) An election must be in writing and signed by or on behalf of each of:
 (a) the entities that own the item immediately before it stops being *trading stock on hand of the transferor; and
 (b) the entities that own it immediately afterwards.

 (9) If a person whose signature is required for the election has died, the *legal personal representative of that person's estate may sign instead.

When election has no effect

 (10) An election has no effect if:
 (a) the item stops being *trading stock on hand of the transferee outside the course of ordinary family or commercial dealing; and
 (b) the *consideration receivable by the transferor (or by any of the entities constituting the transferor) substantially exceeds what would reasonably be expected to be the consideration receivable by the entity concerned if the market value of the item immediately before it stops being *trading stock on hand of the transferor were the *value elected under subsection (4).

 (11) Consideration receivable by an entity means so much of the value of any benefit as it is reasonable to expect that the entity will obtain in connection with the item ceasing to be *trading stock on hand of the transferor.

70-105  Death of owner

 (1) When you die, your assessable income up to the time of your death includes the market value at that time of the *trading stock of your *business (if any).

Note: In the case of trees, you can deduct the relevant portion of your capital costs of acquiring the land carrying the trees or of acquiring a right to fell the trees: see section 70-120.

 (2) The person on whom the *trading stock devolves is treated as having bought it for its market value at that time.

 (3) However, your *legal personal representative can elect to have included in your assessable income (instead of the market value) the amount that would have been the *value of the *trading stock