Document ID: chunk:federal_register_of_legislation:C2004C00927:clause:1_13:p11
Version: federal_register_of_legislation:C2004C00927
Segment Type: clause
Provision Reference: sch 1 cl 13 (pt 11/13)
Character Range: 405377–407905

it for its market value at that time.

 (3) However, your *legal personal representative can elect to have included in your assessable income (instead of the market value) the amount that would have been the *value of the *trading stock at the end of an income year ending on the day of your death.

 (4) In the case of an asset covered by section 70-85 (which applies this Subdivision to certain other assets), your *legal personal representative can elect to have a nil amount included in your assessable income (instead of the market value).

 (5) Your *legal personal representative can make an election only if:
 (a) the *business is carried on after your death; and
 (b) the *trading stock continues to be held as trading stock of that business, or the asset continues to be held as an asset of that business, as appropriate.

 (6) If an election is made, the person on whom the *trading stock devolves is treated as having bought it for the amount referred to in subsection (3) or (4).

 (7) An election can only be made on or before the day when your *legal personal representative lodges your *income tax return for the period up to your death. However, the Commissioner can allow it to be made later.

70-110  You stop holding an item as trading stock but still own it

  If you stop holding an item as *trading stock, but still own it, you are treated as if:
 (a) just before it stopped being trading stock, you had sold it to someone else (at arm's length and in the ordinary course of business) for its *cost; and
 (b) you had immediately bought it back for the same amount.

Example 1: You are a sheep grazier and take a sheep from your stock to slaughter for personal consumption. 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.

 Although you are also treated as having bought the sheep for the same amount, it would not be deductible because the sheep is for personal consumption.

Example 2: You stop holding an item as trading stock and begin to use it as plant 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 depreciation purposes: see Subdivision 42-B.

Note: A transaction that this section treats as having occurred is disregarded for the