Document ID: chunk:federal_register_of_legislation:C2004C00927:clause:1_13:p12
Version: federal_register_of_legislation:C2004C00927
Segment Type: clause
Provision Reference: sch 1 cl 13 (pt 12/13)
Character Range: 407660–410283

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 purposes of these provisions of the Income Tax Assessment Act 1936:
  *    subsection 47A(10) (which treats certain benefits as dividends paid by a CFC)
  *    paragraph 103A(3A)(c) (which affects whether a company is a public company for an income year).

70-115  Compensation for lost trading stock

  Your assessable income includes an amount that:
 (a) you receive by way of insurance or indemnity for a loss of *trading stock; and
 (b) is not assessable as *ordinary income under section 6‑5.

Subdivision 70-E—Miscellaneous

Table of sections
70-120 Deducting capital costs of acquiring trees

70-120  Deducting capital costs of acquiring trees

 (1) This section gives you deductions for your capital costs of acquiring land carrying trees or of acquiring a right to fell trees.

Note: This section is included in this Division because:
  *    trees felled for sale, or for use in manufacture, by you will usually become your trading stock; and
  *    before they are felled, the trees are covered by sections 70‑90 and 70-105 because of section 70-85.

Land carrying trees

 (2) You can deduct an amount for the price you paid to acquire land carrying trees if:
 (a) some or all of the trees are felled during the income year for sale, or for use in manufacture, by you for the *purpose of producing assessable income; or
 (b) some or all of the trees are felled during the income year under a right you granted to another entity in consideration of payments as or by way of  *royalty; or
 (c) the market value of some or all of the trees is included in your assessable income for the income year by section 70-90 (because you disposed of the trees outside the ordinary course of *business) or section 70-105 (because of your death).
(It does not matter when you acquired the land.)

Note: The market value of trees is not included in your assessable income for the income year by section 70-105 (because of your death) if your legal personal representative elects under subsection 70-105(4) to have a nil amount included instead.

Right to fell trees

 (3) You can deduct an amount for the price you paid to acquire a right to fell trees if:
 (a) some or all of the trees are felled during the income year for sale, or for use in manufacture, by you for the *purpose of producing assessable income; or
 (b) some or all of the trees are felled during the income