Document ID: chunk:federal_register_of_legislation:C2025C00029:section:12:p23
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 12 (pt 23/34)
Character Range: 5133318–5136074

328‑255  Closing pool balance etc. below zero
 (1) This section applies if:
 (a) the *closing pool balance of the transferor's *general small business pool for the BAE year is less than zero; or
 (b) the amount worked out under subsection 328‑210(2) for the pool for the BAE year is less than zero;
because a *balancing adjustment event occurred for an asset allocated to that pool during that year.
 (2) The amount included in assessable income under subsection 328‑215(2) is split equally between:
 (a) the transferor and transferee; or
 (b) if there are 2 or more occurrences of *balancing adjustment events for relevant entities for the BAE year and a roll‑over is chosen for each occurrence—the entities concerned.

328‑257  Taxable use
 (1) This section applies to *depreciating assets (the previously held assets) that were *held by the transferor just before the *balancing adjustment events occurred.
 (2) Subsection 328‑205(1) (about estimates of taxable use) does not apply to previously held assets in the hands of the transferee for the BAE year. Instead, the transferee uses for the BAE year:
 (a) the estimate made by the transferor under that subsection for the asset; or
 (b) if the transferor had made one or more estimates for the asset under subsection 328‑225(1) that resulted in an adjustment under section 328‑225 (about change in business use)—that estimate or the most recent of those estimates.
 (3) Section 328‑225 applies to the transferee for each previously held asset for income years after the BAE year as if:
 (a) the transferee had *held the asset during the period that the transferor held it; and
 (b) estimates applicable to the transferor for the asset under that section were also applicable to the transferee.

Subdivision 328‑E—Trading stock for small and medium business entities

Guide to Subdivision 328‑E

328‑280  What this Subdivision is about
      Small and medium business entities can choose not to account for their trading stock in some circumstances. This Subdivision modifies the rules in Division 70 about trading stock for those entities.

Table of sections

Operative provisions
328‑285 Trading stock for small and medium business entities
328‑295 Value of trading stock on hand

Operative provisions

328‑285  Trading stock for small and medium business entities
 (1) You can choose not to account for changes in the *value of your *trading stock for an income year if:
 (a) you are a *small business entity, or an entity covered by subsection (2), for that year; and
 (b) the difference between the value of all your trading stock on hand at the start of that year and the value you reasonably estimate of all your trading stock on hand at the end of that year is not more than $5,000.
Note 1: As