Commonwealth Consolidated Acts

INCOME TAX ASSESSMENT ACT 1997 - SECT 104.220

  (1)   CGT 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.

  (2)   The time of the event is when you start.

  (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

  (4)   A * capital gain or * capital loss you make is disregarded if you * acquired the asset before 20   September 1985.