Document ID: chunk:federal_register_of_legislation:C2004C01190:clause:2_251
Version: federal_register_of_legislation:C2004C01190
Segment Type: clause
Provision Reference: sch 2 cl 251
Character Range: 175823–176417

251  Section 70‑110 (example 2)
Repeal the example, substitute:

Example 2: You stop holding an item as trading stock and begin to use it as a depreciating asset for the purpose of producing your assessable income. You are treated as having sold it for its cost. This amount is assessable income, just like the proceeds of sale of any of your trading stock.

 You are also treated as having bought the item for the same amount, which is relevant to working out the item's cost for capital allowance purposes (see Subdivision 40‑C) and the item's cost base for CGT purposes (see Division 110).