Document ID: chunk:federal_register_of_legislation:C2025C00029:section:3:p17
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 3 (pt 17/53)
Character Range: 2955885–2958513

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; and
 (c) if subparagraph (a)(iii) applies—the item's value under the revaluation is less than:
 (i) in respect of an item that has previously been valued under Division 70—its latest value under that Division before the revaluation; or
 (ii) otherwise—its cost at the time of the revaluation.
  The difference worked out under paragraph (b) or (c), as the case may be, constitutes the amount of the *trading stock loss.

Commencement time
 (2) For the purposes of this Subdivision, the commencement time of a company is:
 (a) if the company was in existence at 1 pm (by legal time in the Australian Capital Territory) on 11 November 1999—that time; or
 (b) if the company came into existence after that time—the time when it came into existence.

Reference time
 (2A) For the purposes of the application of this Subdivision to a company in relation to a particular time (the test time), the reference time is:
 (a) if no changeover time occurred in respect of the company before the test time—the commencement time; or
 (b) otherwise—the time immediately after the last changeover time that occurred in respect of the company before the test time.

Asset owned at more than one changeover time
 (3) If:
 (a) 2 or more changeover times have occurred or occur in relation to a company; and
 (b) the company owned a particular asset at more than one of those changeover times;
this Subdivision applies to the company in respect of that asset only in relation to the later or latest of those changeover times.
Note: For changeover time see sections 165‑115C and 165‑115D.

165‑115B  What happens when the company makes a capital loss or becomes entitled to a deduction in respect of a CGT asset after a changeover time

Where capital loss or deduction is equal to or less than residual unrealised net loss
 (1) If the *capital loss or deduction referred to in subparagraph 165‑115A(1)(c)(i) is equal to or less than the company's residual unrealised net loss at the time of the occurrence of the event that resulted in the capital loss or entitled the company to the deduction:
 (a) the capital loss is taken to have been a *net capital loss; or
 (b) the deduction is taken to have been a *tax loss;
of the company for the income year immediately before the income year in which the changeover time occurred.

Where capital loss or deduction is greater than residual unrealised net loss
 (2) If the *capital loss