Income Tax Assessment Act 1997
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Hide history noteSECTION 70-105 Death of owner 70-105(1)
When you die, your assessable income up to the time of your death includes the *market value at that time of the *trading stock of your *business (if any).
Note:
In the case of trees, you can deduct the relevant portion of your capital costs of acquiring the land carrying the trees or of acquiring a right to fell the trees: see section 70-120 .
70-105(2)
The entity on which the *trading stock devolves is treated as having bought it for its *market value at that time.
70-105(3)
However, your *legal personal representative can elect to have included in your assessable income (instead of the *market value) the amount that would have been the *value of the *trading stock at the end of an income year ending on the day of your death.
70-105(4)
In the case of an asset covered by section 70-85 (which applies this Subdivision to certain other assets), your *legal personal representative can elect to have a nil amount included in your assessable income (instead of the *market value).
70-105(5)
Your *legal personal representative can make an election only if:
(a) the *business is carried on after your death; and
(b) the *trading stock continues to be held as trading stock of that business, or the asset continues to be held as an asset of that business, as appropriate.
70-105(6)
If an election is made, the entity on which the *trading stock devolves is treated as having bought it for the amount referred to in subsection (3) or (4).
70-105(7)
An election can only be made on or before the day when your *legal personal representative lodges your *income tax return for the period up to your death. However, the Commissioner can allow it to be made later.
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