Document ID: chunk:federal_register_of_legislation:C2004C00927:clause:1_3:p3
Version: federal_register_of_legislation:C2004C00927
Segment Type: clause
Provision Reference: sch 1 cl 3 (pt 3/24)
Character Range: 418008–420552

the disposal or death the sum of:
 (a) the purchase price of as many of the *live stock as you purchased during the income year; and
 (b) the *value of the rest of the live stock as *trading stock on hand at the start of the income year.

385-110  Alternative election to defer tax profit and reduce cost of replacement live stock

 (1) Alternatively, you can elect:
 (a) to include in your assessable income for the *disposal year the *proceeds of the disposal or death, reduced by the *tax profit on the disposal or death; and
 (b) to reduce the cost of replacement *live stock you buy in the disposal year (or any of the next 5 income years) by amounts totalling not more than the tax profit on the disposal or death; and
 (c) to include in your assessable income for the last of the 5 income years following the disposal year any *unused tax profit on the disposal or death on the last day of that year.

Note: If the election is made because of bovine tuberculosis, it has effect over 10 income years instead of 5: see section 385‑125.

For rules about the making and effect of an election, see Subdivision 385-H

 (2) However, you can only make this election if you will use the *proceeds of the disposal or death mainly to buy replacement *live stock, or to maintain breeding stock for the purpose of replacing the live stock that were disposed of or died.

 (3) The unused tax profit on the disposal or death is the *tax profit on the disposal or death less the total of:
 (a) the amounts included in your assessable income under section 385-115 for replacement animals you breed; and
 (b) the amounts by which the purchase price of replacement animals is reduced under section 385-120.

385-115  Your assessable income includes an amount for replacement live stock you breed

  If you make the election in section 385-110, then for the *disposal year and each of the next 5 income years, your assessable income includes any amount you choose for each replacement animal you breed during that income year. (However, you can choose not to include an amount.)

385-120  Purchase price of replacement live stock is reduced

 (1) If you make the election in section 385-110, then the purchase price of each replacement animal you buy in the *disposal year, or in the next 5 income years, is treated as if it were reduced by the *reduction amount.

Meaning of reduction amount

 (2) The reduction amount is:
  so much of the *tax profit on the disposal or death as is attributable to live stock of the species you are replacing;
divided