Document ID: chunk:federal_register_of_legislation:F2020L00177:reg:3:p5
Version: federal_register_of_legislation:F2020L00177
Segment Type: reg
Provision Reference: reg 3 (pt 5/5)
Character Range: 11730–12861

valuation method used to value the trading stock at the end of the preceding income year; and
 (ii) a different valuation method in accordance with an election made under section 70-50 of the ITAA 1997 at the end of the income year, giving an amount (the second valuation); and
 (b) the first valuation exceeds the second valuation; and
 (c) the entity's income from the enterprise is reduced by the amount of any excess of the first valuation over the second valuation (the allowable deduction); and
 (d) the allowable deduction exceeds the difference (if any) in the value of the trading stock if its value at the end of the income year were worked out by using the same valuation method used for the first valuation.
 (2) The amount by which the allowable deduction, referred to in paragraph (1)(c), is greater than the difference in the value of the trading stock, referred to in paragraph (1)(d), is an ineligible part of the allowable deduction.
Schedule 1 Ineligible deductions for section 52ZZO of the Act
(subsection 5(1))
Part 1 Ineligible deductions: ITAA 1936

Item   Provision                       General description