Commentary

B2.609 Livestock

Business tax
Business tax | Commentary

B2.609 Livestock

Business tax | Commentary

B2.609 Livestock

At one time all farm animals were treated as trading stock. It is now possible1 for a farmer to elect to treat 'production herds' as fixed assets. The provisions governing an election for the 'herd basis', the tax computations based on such an election and other rules relating to the treatment of livestock are described in detail in Division B5.1.

Where such an election has not been made, all the animals are treated as trading stock2.

These provisions do not apply where profits are calculated using the cash basis for small businesses, see B2.101A

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