You may offset an unapplied FIF loss from an interest in a FIF or an FLP against assessable income for the part of the income from that interest that was taxed previously. You may also carry forward an unapplied FIF loss and offset it against any market value increase from the same FIF or FLP in subsequent periods. Keep records of these losses.
Deemed rate of return method
If you use the deemed rate of return method of taxation, keep records showing how you worked out the foreign investment fund income that accrued to you from the FIF or FLP. [sections 617 or 619]
The records are to include details of:
- the calculation of the opening value of the FIF or FLP interest
- the acquisition and sale of interests in a FIF or FLP, and
- the distributions received from a FIF or FLP.