Document ID: chunk:federal_register_of_legislation:C2025C00029:section:4:p2
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 4 (pt 2/2)
Character Range: 1553788–1555594

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 small business entities) at the end of the last income year.
 (2) The value of the item is a nil amount if the item was not taken into account under this Division or Subdivision 328‑E (about trading stock for small business entities) at the end of the last income year.

70‑45  Value of trading stock at end of income year
 (1) You must elect to value each item of *trading stock on hand at the end of an income year at:
 (a) its *cost; or
 (b) its market selling value; or
 (c) its replacement value.
Note: An item's market selling value at a particular time may not be the same as its market value.
 (1A) In working out the *cost, market selling value or replacement value of an item of *trading stock (other than an item the *supply of which cannot be a *taxable supply) at the end of an income year, disregard an amount equal to the amount of the *input tax credit (if any) to which you would be entitled if:
 (a) you had *acquired the item at that time; and
 (b) the acquisition had been solely for a *creditable purpose; and
Note: Some assets, such as shares, cannot be the subject of a taxable supply.
 (2) The rest of this Subdivision deals with cases where the normal operation of this section is modified, or where a different valuation method may or must be used. The table sets out other cases where that happens because of provisions outside this Subdivision.

Rules about the value of trading stock
Item                                    For this situation:                                                                                                                          See: