Income Tax Assessment Act 1997
PART 6-1 - CONCEPTS AND TOPICS
Division 977 - Realisation events, and the gains and losses they realise for income tax purposes
SECTION 977-30 Ending of an income year: loss realised for income tax purposes
977-30(1)
A loss is
realised for income tax purposes
by a *realisation event that happens to an item of *trading stock and consists of the ending of an income year if, and only if, the *value of the item, as trading stock of an entity on hand at the end of that income year, is less than:
(a)
its *cost, if it became part of the trading stock on hand of the entity during that income year; or
(b)
otherwise, its value as trading stock of the entity on hand at the start of that income year.
977-30(2)
The loss that is realised for income tax purposes by the event is the difference between the *value of the item, as *trading stock of the entity on hand at the end of that income year and:
(a)
the amount that the entity can deduct for the item's *cost; or
(b)
the item's *value as trading stock on hand at the start of the income year;
as appropriate.
977-30(3)
If a provision of this Act reduces the loss that would, apart from that provision, be *realised for income tax purposes by the event:
(a)
the amount that the entity can deduct for the item's *cost; or
(b)
the item's *value as *trading stock on hand at the start of the income year;
as appropriate, is reduced by the same amount.
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