INCOME TAX ASSESSMENT ACT 1997

CHAPTER 3 - SPECIALIST LIABILITY RULES  

PART 3-10 - FINANCIAL TRANSACTIONS  

Division 230 - Taxation of financial arrangements  

Subdivision 230-A - Core rules  

Tax treatment of gains and losses from financial arrangements

SECTION 230-35   Treatment of gains and losses of private or domestic nature  

Borrowings etc. used for private or domestic purpose

230-35(1)  
Subsections (2) and (3) apply if:


(a) a *borrowing is made by you, or credit is provided to you, under a *financial arrangement; and


(b) you use some or all of the funds borrowed or the credit provided for a private or domestic purpose.

230-35(2)  
This Division does not apply to a gain you make from the arrangement to the extent that you use the funds raised or the credit provided for a private or domestic purpose.

230-35(3)  
A loss you make from the arrangement is not allowable as a deduction to you under any provision of this Act to the extent that you use the funds raised or the credit provided for a private or domestic purpose. Derivative financial arrangement held for private or domestic purpose

230-35(4)  
Subsections (5) and (6) apply if:


(a) you are an individual; and


(b) you make a gain or loss from a *derivative financial arrangement; and


(c) the arrangement is held, wholly or in part, for a private or domestic purpose.

230-35(5)  
This Division does not apply to a gain you make from the arrangement to the extent that the arrangement is held or used for a private or domestic purpose.

230-35(6)  
A loss you make from the arrangement is not allowable as a deduction to you under any provision of this Act to the extent that the arrangement is held or used for a private or domestic purpose.


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