Document ID: chunk:federal_register_of_legislation:C2025C00162:section:1074
Version: federal_register_of_legislation:C2025C00162
Segment Type: section
Provision Reference: s 1074
Character Range: 2100486–2101273

1074  Ordinary income from a business—treatment of trading stock
 (1) If:
 (a) a person carries on a business; and
 (b) the value of all the trading stock on hand at the end of a tax year is greater than the value of all the trading stock on hand at the beginning of that tax year;
the person's ordinary income for that tax year in the form of profits from the business is to include the amount of the difference in values.
 (2) If:
 (a) a person carries on a business; and
 (b) the value of all the trading stock on hand at the end of a tax year is less than the value of all the trading stock on hand at the beginning of that tax year;
the person's ordinary income for that tax year in the form of profits from the business is to be reduced by the amount of the difference in values.