Quote Originally Posted by Aaron View Post
Unless you are a barrister or doctor, Jay I think you have to account for business income on an accrual basis which would include valuing closing stock.
From an IRD Questions we've been asked:

Quote Originally Posted by IRD -13 February 2004
Question

Can a taxpayer claim a deduction for unrealised share losses?
Answer

Generally, unrealised share trading losses will not be deductible for tax purposes.
Taxpayers in the business of trading in shares hold shares as trading stock. Under the trading stock rules, shares must be valued at cost. Consequently, only realised losses are deductible. However, the shares may be valued at nil if they:

  • • have no current or likely future market value; and
  • • have been written off as worthless by the taxpayer.

Alternatively, shares which are bought for resale at a profit may not be classed as trading stock, but could meet the definition of “revenue account property”. A deduction for revenue account property is available only in the later of:

  • • the income year in which the property is disposed of; or
  • • the income year in which the proceeds are derived.