Income Tax Assessment Act 1997
View history note
Hide history noteA 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.
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.
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