Section 650 — Income Tax Act 2007: Trading stock appropriations etc

Trading stock appropriations etc 650 1 Subsection (2) applies if a person—

a acquires securities otherwise than as trading stock of a trade the person carries on, and b appropriates the securities as trading stock for the purposes of such a trade (whether on the start of the trade or otherwise).

2 The person is treated for the purposes of this Chapter as transferring the securities otherwise than in the course of the trade, and re-acquiring them in the course of the trade, on the day of appropriation.

3 Subsection (4) applies if securities—

a form part of the trading stock of a person's trade, and b are appropriated by the person for any other purpose.

4 The person is treated for the purposes of this Chapter as transferring the securities in the course of the trade, and re-acquiring them otherwise than in the course of the trade, on the day of appropriation.

5 Subsection (6) applies if securities—

a form part of the trading stock of a person's trade, and b are retained by the person on ceasing to carry on the trade.

6 The person is treated for the purposes of this Chapter as transferring the securities in the course of the trade, and re-acquiring them otherwise than in the course of the trade, on the day of cessation.

7 See sections 623(2) to (4) and 624(2) to (4) for cases where securities are treated as transferred with or without accrued interest where this section applies.