Document ID: chunk:federal_register_of_legislation:C2025C00029:section:3
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 3
Character Range: 3938644–3940901

3                                     a risk being hedged by your *hedging financial arrangement ceases to exist                                  to the income year in which the risk ceases to exist.

 (2) For the purposes of item 2A of the table in subsection (1), determine the extent to which the gain or loss is reasonably attributable to a particular *hedged item having regard to the following:
 (a) the fair value of the hedged item;
 (b) the length of the period over which you have held the hedged item;
 (c) commercially accepted valuation principles;
 (d) any other relevant factors.

230‑310  Aligning tax classification of gain or loss from hedging financial arrangement with tax classification of hedged item
 (1) The object of this section is to better align, in particular circumstances, the tax classification of a gain or loss you make from a *hedging financial arrangement with the tax classification of the *hedged item.
 (2) This section applies if:
 (a) you make a gain or loss from a *hedging financial arrangement for an income year; and
 (b) a *hedging financial arrangement election applies to the arrangement.
 (3) Subject to subsection (4):
 (a) if you make a gain from the arrangement—your assessable income includes the gain in accordance with subsection 230‑15(1); and
 (b) if you make a loss from the arrangement—you may deduct the loss in accordance with subsections 230‑15(2) and (3).
Note: Section 230‑300 tells you how to allocate the gain or loss to an income year or years.
 (4) A gain or loss you make from a *hedging financial arrangement, to the extent to which it is reasonably attributable to a *hedged item referred to in the following table, is dealt with in the way indicated in that item:

Special tax classification for gains and losses
Item                                             For a hedged item that is or produces …                                                                                                                                                         the gain …                                                                                                                                                                                                                  the loss …