Page 35 - Trading Stock

Trading stock Capital Asset

DEEMED

disposed of asset
ON date of change

Capital asset becomes trading stock - par 12(2)(c)

 Deemed disposal @ MV on date of change of intention - CGT

Proceeds = MV

Less Base cost
 Deemed reacquired @ MV – normal costs deduct as cost -

s22(3)

Trading stock becomes capital asset - par 12(3)

 Deemed disposal (recoupment i.t.o. s22(8) @ MV)

 Deemed reacquired @ the same value
35

Base cost