Income Tax Assessment Act 1997
View history note
Hide history noteCGT event K4 happens if:
(a) you start holding as *trading stock a *CGT asset you already own but do not hold as trading stock; and
(b) you elect under paragraph 70-30(1)(a) to be treated as having sold the asset for its *market value.
Note 1:
Paragraph 70-30(1)(a) allows you to elect the cost of the asset, or its market value, just before it became trading stock.
Note 2:
There is an exemption if you elect its cost: see section 118-25 .
104-220(2)
The time of the event is when you start.
104-220(3)
You make a capital gain if the asset ' s *market value (just before it became *trading stock) is more than its *cost base. You make a capital loss if that market value is less than its *reduced cost base.
Exception
104-220(4)
A *capital gain or *capital loss you make is disregarded if you *acquired the asset before 20 September 1985.
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