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FX gain/loss on transfers of foreign currency

Newbie

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I refer to the FX Gain & Loss guideline on the ATO website and wish to seek confirmation / clarification on the following scenarios:

1. On 1 Feb 2021 I transferred USD 1000 from my USD Current Account to place a 3-month USD term deposit within the same bank (Bank A). Upon maturity on 30 Apr 2021 the principal and interest of USD 1010 was credited to my USD Current Account.  I will report interest income of USD 10.

2. Same transaction as scenario 1, except that the funds was transferred to my account at another bank (Bank B) for USD term deposit.  

3. On 1 May 2021, I bought USD shares worth of USD 1000 via Bank A.  On 3 May 2021, the trade was settled by withdrawing USD 1000 from my USD Current Account. I understand I should use the exchange rate on 1 May 2021 to calculate the cost base of the shares for future CGT purpose.

4. Same transaction as scenario 1, except that the funds was transferred to my spouse's account at Bank A for USD term deposit.  Upon maturity on 30 Apr 2021 the principal of USD 1000 was transferred to my USD Current Account. My spouse will report interest of USD 10.

 

Given the transfer of funds in all scenarios above did not involve any currency conversion, I consider there is no reportable FX gain /loss.  Appreciate any advice if my understanding is correct.  Thank you.

1 ACCEPTED SOLUTION

Accepted Solutions

Most helpful response

Community Manager

Replies 0

Hi @FXQ 

 

We'd recommend getting in touch with our early engagement team on this one so they can have a look at your exact circumstances and give you some tailored advice.

1 REPLY 1

Most helpful response

Community Manager

Replies 0

Hi @FXQ 

 

We'd recommend getting in touch with our early engagement team on this one so they can have a look at your exact circumstances and give you some tailored advice.