Income Tax Assessment Act 1997
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View history noteDiv 977 inserted by No 90 of 2002 (as amended by No 110 of 2014).
A gain is realised for income tax purposes by a * realisation event consisting of disposal of an item of * trading stock if, and only if:
(a) the item is disposed of, for more than its * cost, in the same income year in which it became part of the trading stock on hand of the entity disposing of it; or
(b) the item is disposed of in a later income year for more than its * value as trading stock of the entity on hand at the start of the later income year.
977-35(2)
The gain that is realised for income tax purposes by the event is the difference between the amount included in the entity's assessable income because of the disposal 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 later income year;
as appropriate.
S 977-35(2) amended by No 12 of 2012, s 3 and Sch 6 item 57, by substituting " * trading stock " for " trading stock " in para (b), effective 21 March 2012.
977-35(3)
If a provision of this Act reduces the gain that would, apart from that provision, be * realised for income tax purposes by the event, the amount that is included in the assessable income of the entity because of the disposal is reduced by the same amount.
S 977-35 inserted by No 90 of 2002.
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