Document ID: chunk:federal_register_of_legislation:C2025C00029:section:3:p16
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 3 (pt 16/53)
Character Range: 2953531–2956104

asset referred to in subsection (1A);
 (ii) the company makes a *trading stock loss in respect of a CGT asset referred to in subsection (1A) that is an item of *trading stock; and
 (d) the company would not, at the changeover time, satisfy the maximum net asset value test under section 152‑15.

CGT assets in respect of which Subdivision applies
 (1A) The *CGT assets for the purposes of paragraph (1)(c) are:
 (a) any CGT asset that the company owned at the changeover time; and
 (b) any CGT asset that the company did not own at the changeover time but had owned at a previous time, where:
 (i) a deferral event referred to in subsection 170‑255(1) happened before the changeover time; and
 (ii) the deferral event involved the company as the originating company referred to in that subsection; and
 (iii) the deferral event would have resulted in the company making a *capital loss, or becoming entitled to a deduction, in respect of the CGT asset except for section 170‑270; and
 (iv) the company is not taken to have made a capital loss at or before the changeover time, or to have become entitled to a deduction at that time, under section 170‑275 in respect of the asset.

Company may choose to disregard CGT assets acquired for less than $10,000
 (1B) A company may choose, for the purposes of the application of this Subdivision to it in respect of a particular changeover time, that every *CGT asset that has been acquired by it for less than $10,000 is to be disregarded.
  However, the choice does not affect the application of the *global method of working out whether the company has an unrealised net loss (see subsection 165‑115E(2)).

Time for making choice
 (1C) A choice under subsection (1B) must be made on or before:
 (a) the day on which the company lodges its *income tax return for the income year in which the relevant changeover time occurred; or
 (b) such later day as the Commissioner allows.

Trading stock loss
 (1D) A company is taken to have made a trading stock loss in respect of an asset that is an item of *trading stock if, and only if:
 (a) one of the following applies:
 (i) the company *disposes of the item;
 (ii) the item stops being trading stock (within the meaning of section 70‑80);
 (iii) the item is revalued under Division 70; and
 (b) if subparagraph (a)(i) or (ii) applies—the item's *market value at the time when it is disposed of or stops being trading stock is less than:
 (i) in respect of an item that has been valued under Division 70—its latest value under the Division; or
 (ii) otherwise—its cost at that time;