Document ID: chunk:federal_register_of_legislation:C2025C00029:section:4:p1
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 4 (pt 1/2)
Character Range: 1551182–1553995

4                                           any other case where you last acquired the item for no consideration                                                                                                                                                                                                                                      a nil amount

Exceptions
 (5) Subsection (1) does not apply if you start holding any of the following as *trading stock because they are severed from land:
 (a) standing or growing crops;
 (b) crop‑stools;
 (c) trees planted and tended for sale.
(This does not prevent subsection (1) from applying to a severed item that you later start holding as trading stock.)
 (6) Subsection (1) does not apply if:
 (a) you start holding an item as *trading stock; and
 (b) immediately before you started holding the item as trading stock, you *held the item as a *registered emissions unit.
Note: A transaction that this section treats as having occurred is disregarded for the purposes of these provisions of the Income Tax Assessment Act 1936:
• subsection 47A(10) (which treats certain benefits as dividends paid by a CFC)
• paragraph 103A(3A)(c) (which affects whether a company is a public company for an income year).

Subdivision 70‑C—Accounting for trading stock you hold at the start or end of the income year

Table of sections

General rules
70‑35 You include the value of your trading stock in working out your assessable income and deductions
70‑40 Value of trading stock at start of income year
70‑45 Value of trading stock at end of income year

Special valuation rules
70‑50 Valuation if trading stock obsolete etc.
70‑55 Working out the cost of natural increase of live stock
70‑60 Valuation of horse breeding stock
70‑65 Working out the horse opening value and the horse reduction amount

General rules

70‑35  You include the value of your trading stock in working out your assessable income and deductions
 (1) If you carry on a *business, you compare:
 (a) the *value of all your *trading stock on hand at the start of the income year; and
 (b) the *value of all your trading stock on hand at the end of the income year.
Note: You may not need to do this stocktaking if you are a small business entity: see Division 328.
 (2) Your assessable income includes any excess of the *value at the end of the income year over the value at the start of the income year.
 (3) On the other hand, you can deduct any excess of the *value at the start of the income year over the value at the end of the income year.

70‑40  Value of trading stock at start of income year
 (1) The value of an item of *trading stock on hand at the start of an income year is the same amount at which it was taken into account under this Division or Subdivision 328‑E (about trading stock for