Income Tax Assessment Act 1997
View history note
Hide history noteThe following table has effect unless you have made a choice under section 775-80 :
| Tax consequences of certain short-term forex realisation losses | ||
| Item | In this case … | this is the result … |
| 1 | you make a *forex realisation loss as a result of forex realisation event 2, and: | (a) the forex realisation loss is not deductible under section 775-30; and |
| (a) the right to receive *foreign currency was created in return for the occurrence of a *realisation event in relation to a *CGT asset you own; and | (b) CGT event K11 happens. | |
| (b) item 6 of the table in subsection 775-45(7) applies; and | ||
| (c) the foreign currency became due for payment within 12 months after the occurrence of the realisation event | ||
| 2 | you make a *forex realisation loss as a result of forex realisation event 4, and: | (a) the forex realisation loss is not deductible under section 775-30; and |
| (a) the obligation to pay *foreign currency was incurred:
(i) in return for the acquisition of a *CGT asset; or (ii) as the second, third, fourth or fifth element of the *cost base of a CGT asset; and |
(b) both the *cost base and the *reduced cost base of the CGT asset are increased by an amount equal to the *forex realisation loss. | |
| (b) item 9 of the table in subsection 775-55(7) applies; and | ||
| (c) the foreign currency became due for payment within 12 months after the time when: | ||
| (i) if subparagraph (a)(i) applies - you acquired the CGT asset (worked out under Division 109); or | ||
| (ii) if subparagraph (a)(ii) applies - you incurred the relevant expenditure | ||
| 3 | you make a *forex realisation loss as a result of forex realisation event 4, and:
(a) the obligation to pay *foreign currency was incurred: (i) in return for your starting to hold a *depreciating asset; or (ii) as the second element of the cost of a depreciating asset; and (b) if subparagraph (a)(i) applies - the foreign currency became due for payment within the 24-month period that began 12 months before the time when you began to hold the depreciating asset (worked out under Division 40); and (c) if subparagraph (a)(ii) applies - the foreign currency became due for payment within 12 months after the time when you incurred the relevant expenditure |
(a) the forex realisation loss is not deductible under section 775-30; and
(b) if: (i) the forex realisation event happens in the income year in which the asset ' s *start time occurs; and (ii) the asset is not allocated to a pool under Subdivision 40-E or 328-D; the asset ' s *cost is increased by an amount equal to the forex realisation loss; and (c) if: (i) the forex realisation event happens in an income year that is later than the one in which the asset ' s *start time occurs; and (ii) the asset is not allocated to a pool under Subdivision 40-E or 328-D; |
| the depreciating asset ' s *opening adjustable value for the income year in which the forex realisation event happens is increased by an amount equal to the forex realisation loss; and | ||
| (d) if the asset is allocated to a pool under Subdivision 40-E or 328-D - the opening pool balance of the pool for the income year in which the forex realisation event happens is increased by an amount equal to the forex realisation loss. | ||
| 4 | you make a *forex realisation loss as a result of forex realisation event 4, and: | (a) the forex realisation loss is not deductible under section 775-30; and |
| (a) the obligation to pay *foreign currency was incurred as a project amount; and
(b) the foreign currency became due for payment within 12 months after the time when you incurred the project amount |
(b) the pool value of the project pool for the income year in which you incurred the project amount is increased by an amount equal to the forex realisation loss. |
775-75(2)
To the extent that:
(a) section 775-30 would have allowed you a deduction for a *forex realisation loss if this section had not been enacted; and
(b) apart from this subsection, another provision of this Act would allow you a deduction for the loss;
you cannot deduct the loss under that other provision.
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