Document ID: chunk:federal_register_of_legislation:C2025C00029:section:6:p3
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 6 (pt 3/20)
Character Range: 1561267–1563832

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 trading stock are:
 (a) you dispose of it outside the ordinary course of business; or
 (b) interests in it change; or
 (c) you die; or
 (d) you stop holding it as trading stock.

Operative provisions

70‑85  Application of this Subdivision to certain other assets
  This Subdivision (except section 70‑115) applies to certain assets of a *business as if they were *trading stock on hand of the entity that carries on that business. The assets are:
 (a) standing or growing crops; and
 (b) crop‑stools; and
 (c) trees planted and tended for sale.
Note: Section 70‑115 assesses insurance or indemnity amounts for lost trading stock.

70‑90  Assessable income on disposal of trading stock outside the ordinary course of business
 (1) If you dispose of an item of your *trading stock outside the ordinary course of a *business:
 (a) that you are carrying on; and
 (b) of which the item is an asset;
your assessable income includes the *market value of the item on the day of the disposal.
 (1A) If the disposal is the giving of a gift of property by you for which a valuation under section 30‑212 is obtained, you may choose that the *market value is replaced with the value of the property as determined under the valuation. You can only make this choice if the valuation was made no more than 90 days before or after the disposal.
 (2) Any amount that you actually receive for the disposal is not included in your assessable income (nor is it *exempt income).
Note 1: In the case of an asset covered by section 70‑85 (which applies this Subdivision to certain other assets), the disposal will usually involve disposing of the land of which the asset forms part.
Note 2: For certain disposals of live stock by primary producers, special rules apply: see Subdivision 385‑E.
Note 3: If the disposal is by way of gift, you may be able to deduct the gift: see Division 30 (Gifts).
Note 4: If the disposal is 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.
Note 5: This section and section 70‑95 also apply to disposals of certain items on hand at the end of 1996‑97 that are not trading stock but were trading stock as defined in the Income Tax Assessment Act 1936: see section 70‑10 of the Income Tax (Transitional