Document ID: chunk:federal_register_of_legislation:C2011C00698:clause:3_3:p1
Version: federal_register_of_legislation:C2011C00698
Segment Type: clause
Provision Reference: sch 3 cl 3 (pt 1/5)
Character Range: 31081–33723

3                                                        Section 118‑60          Certain gifts

Trading stock and profit‑making undertakings or plans involving land etc.

 (4) The provisions referred to in subsection (2) can also apply to the *CGT event if:
 (a) where the *CGT asset is land (including an interest in land), or a right or option to *acquire or *dispose of land (including an interest in land):
 (i) the CGT asset is *trading stock; or
 (ii) the circumstances existing at the time of the event would, disregarding this Subdivision, give rise to an amount being included in the assessable income of the entity under section 15‑15 or to a deduction for the entity under section 25‑40 (about profit‑making undertakings or plans); or
 (b) where paragraph (a) does not apply:
 (i) the *managed investment trust acquired the CGT asset in an income year for which the choice mentioned in paragraph (1)(f) was not in force; and
 (ii) the CGT asset was treated as trading stock in the managed investment trust's financial report for the most recent income year ending before the start of the income year in which that choice first came into force; and
 (iii) the CGT asset was treated as trading stock in the *income tax return for the managed investment trust for the most recent income year ending before the start of the income year in which that choice first came into force; and
 (iv) the CGT asset was treated as trading stock in the managed investment trust's financial report for the most recent income year ending before the time of the event; and
 (v) the CGT asset was treated as trading stock in the income tax return for the managed investment trust for the most recent income year ending before the time of the event.

Treatment of outgoings to acquire trading stock

 (5) The modifications in subsection (6) apply if:
 (a) an entity that is a *managed investment trust in relation to the income year *acquires a *CGT asset at a time in that income year; and
 (b) the CGT asset is an item of *trading stock; and
 (c) the CGT asset is not land (including an interest in land), or a right or option to acquire or *dispose of land (including an interest in land); and
 (d) the entity incurs an outgoing in connection with acquiring the asset; and
 (e) the asset is covered by section 275‑105; and
 (f) the entity meets the requirement in section 275‑110 at the time; and
 (g) a choice under section 275‑115 covering the entity is in force for the income year in which the time occurs.

 (6) The modifications are as follows:
 (a) section 8‑1 (about amounts you can deduct) does not apply to the *acquisition;
 (b) Division