Question:
Just requiring verification of transfer of livestock on Cessation of a Partnership, 4 Partners in equal shares. The livestock is transferred to 2 Sons in equal shares, and they will trade individually going forward.
Can I use the election and transfer the livestock at book value, i.e. 3661 Sheep at $21966?
Also, can you please very the correct Notice of Election, previously Sub-Section 36AAA(8) of Income Tax Assessment Act 1936
Answer
While section 36 AAA(8) has been replaced, we cannot find its equivalent in the 1997 act.
We believe the sheep can be transferred at book value. The election should simply state the facts and be kept on file.
Further, we refer you to section 70-100 of ITAA 1997 which states you can use the same methods available to value closing stock or “book value” as you refer to it.
This section does not mention any need for any formal election.
However, like yourself, we recall that being a requirement in the past.