Income Tax Assessment Act 1997
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 775-30(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||forex realisation event 2||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||forex realisation event 4||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|
Parts 3-1 and 3-3 deal with capital gains and losses.775-30(3)
Section 775-75 provides for additional exceptions.
Section 775-75 is about the tax consequences of certain short-term forex realisation losses.No double deductions 775-30(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.
Under section 230-20 , foreign exchange losses from a Division 230 financial arrangement are dealt with under Division 230 and not under this Division.
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