Commonwealth Consolidated Acts

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INCOME TAX ASSESSMENT ACT 1997 - SECT 385.110

Alternative election to defer tax profit and reduce cost of replacement live stock

             (1)  Alternatively, you can elect:

                     (a)  to include in your assessable income for the * disposal year the * proceeds of the disposal or death, reduced by the * tax profit on the disposal or death; and

                     (b)  to reduce the cost of replacement * live stock you buy in the disposal year (or any of the next 5 income years) by amounts totalling not more than the tax profit on the disposal or death; and

                     (c)  to include in your assessable income for the last of the 5 income years following the disposal year any * unused tax profit on the disposal or death on the last day of that year.

Note:          If the election is made because of bovine tuberculosis, it has effect over 10 income years instead of 5: see section 385- 125.

For rules about the making and effect of an election, see Subdivision 385-H

             (2)  However, you can only make this election if you will use the * proceeds of the disposal or death mainly to buy replacement * live stock, or to maintain breeding stock for the purpose of replacing the live stock that were disposed of or died.

             (3)  The unused tax profit on the disposal or death is the * tax profit on the disposal or death less the total of:

                     (a)  the amounts included in your assessable income under section 385- 115 for replacement animals you breed; and

                     (b)  the amounts by which the amount paid or payable for the purchase of replacement animals is reduced under section 385-120.



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