Change the way you feel about taxes. Get informed and discover what the taxman doesn’t want you to know. What sections of the ATO tax acts make a living trading currency foreign currency trading?
That is cash base online trading with no physical goods exchange? The tax treatment of foreign currency gains and losses is discussed in Division 775 of the Income Tax Assessment Act 1997. The Division effectively caters for all types of foreign currency transactions including having a foreign currency denominated bank accounts and shares, overseas rental properties, trading stock, hedging transactions as well as the purchase and subsequent disposal of capital assets. Section 775-15 states that foreign gains are assessable when they are realised unless it is a gain of a domestic or private nature, such as when you go travelling overseas on holidays or purchase goods for personal use. However to take advantage of this exemption you must make an election to disregard any realised foreign currency gains or losses for accounts with a balance under this threshold. Sub-division 960C of the Income Tax Assessment Act 1997 sets out the rules for foreign currency to be translated into an Australian dollar amount including the use of an appropriate prevailing exchange rate for the translation. Dec 2011 issue of YTE Magazine www.
Copyright Your Media Edge Pty Ltd 2011. 250,000 I can elect for it to be not assessible for tax purposes whether I make a gain or a loss? Hi Mr Taxman, Thank you for providing such informative site for all of us – very gen of you! My question is about Forex Currency Trading. I claim this as an expense on my Tax Return?