Commonwealth Consolidated Acts Commonwealth Consolidated ActsBasic rule
(1) You can deduct from your assessable income for an income year a * forex realisation loss that you make as a result of a * forex realisation event that happens during that year.
Exceptions
(2) However, you cannot deduct a * forex realisation loss under this section to the extent that it:
(a) is a loss of a private or domestic nature; and
(b) is not covered by an item of the table:
Forex realisation losses to which this subsection does not apply | |||
Item | You make the forex realisation loss as a result of this event... | happening to... | and the following condition is satisfied... |
1 | a right, or a part of a right, created or acquired in return for the occurrence of a * realisation event in relation to a * CGT asset you own, where subparagraph 775 - 45(1)(b)(iv) applies | a gain or loss that would result from the occurrence of the realisation event in relation to the CGT asset would be taken into account for the purposes of Part 3 - 1 or 3 - 3 | |
2 | an obligation, or a part of an obligation, you incurred in return for the acquisition of a * CGT asset | a gain or loss that would result from the occurrence of a * realisation event in relation to the CGT asset would be taken into account for the purposes of Part 3 - 1 or 3 - 3 | |
Note: Parts 3 - 1 and 3 - 3 deal with capital gains and losses.
(3) Section 775 - 75 provides for additional exceptions.
Note: Section 775 - 75 is about the tax consequences of certain short - term forex realisation losses.
No double deductions
(4) To the extent that this section and another provision of this Act would allow you a deduction for a * forex realisation loss, you can only deduct the loss under this section.
Note: Under section 230 - 20, foreign exchange losses from a Division 230 financial arrangement are dealt with under Division 230 and not under this Division.