Document ID: chunk:federal_register_of_legislation:C2025C00029:section:6:p1
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 6 (pt 1/20)
Character Range: 1556541–1559076

6                                       The hybrid mismatch rules disallow an amount of a deduction for an outgoing incurred in connection with acquiring an item of *trading stock  Section 832‑60 of this Act

Special valuation rules

70‑50  Valuation if trading stock obsolete etc.
  You may elect to value an item of your *trading stock below all the values in section 70‑45 if:
 (a) that is warranted because of obsolescence or any other special circumstances relating to that item; and
 (b) the value you elect is reasonable.

70‑55  Working out the cost of natural increase of live stock
 (1) The cost of an animal you hold as *live stock that you acquired by natural increase is whichever of these you elect:
 (a) the actual cost of the animal;
 (b) the cost prescribed by the regulations for each animal in the applicable class of live stock.
 (2) However, if you incur a service fee for insemination and, as a result, acquire a horse by natural increase, its cost is the greater of:
 (a) the amount worked out under subsection (1); and
 (b) the part of the service fee that is attributable to your acquiring the horse.
 (3) An election under this section must be made by the time you lodge your *income tax return for the income year in which you acquired the animal. However, the Commissioner can allow you to make it later.

70‑60  Valuation of horse breeding stock
 (1) For a horse at least 3 years old that you acquired under a contract and hold for breeding, you can elect a value other than the values in section 70‑45.
 (2) The value you can elect for the horse at the end of the income year is worked out using the table:

Value of horse breeding stock
If the horse is:               ... you can value it at this amount:
female 12 years or over        $1
any other horse                the *horse opening value less the *horse reduction amount (see section 70‑65)

 (3) However, if the value worked out under subsection (2) would be less than $1, you must elect the value of $1.
 (4) A horse's age is to be measured in whole years as at the end of the relevant income year. The age of a horse not born on 1 August is determined as if the horse had been born on the last 1 August before it was actually born.

70‑65  Working out the horse opening value and the horse reduction amount
 (1) The horse opening value is:
 (a) if the horse has been your *live stock ever since the start of the income year—its *value as *trading stock at the start of the income year; or
 (b) otherwise—the horse's base amount (see subsection