Document ID: chunk:federal_register_of_legislation:C2025C00029:section:6:p3
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 6 (pt 3/4)
Character Range: 6861223–6863846

incurred the obligation, or the part of the obligation, as the second, third, fourth or fifth element of the *cost base of a CGT asset;
 (vi) you incurred the obligation, or the part of the obligation, in return for your starting to hold a *depreciating asset, and you deduct an amount under Division 40 or 328 for the depreciating asset;
 (vii) you incurred the obligation, or the part of the obligation, as the second element of the *cost of a depreciating asset, and you deduct an amount under Division 40 or 328 for the depreciating asset;
 (viii) you incurred the obligation, or the part of the obligation, as a *project amount;
 (ix) you incurred the obligation, or the part of the obligation, in return for receiving an amount of Australian currency or foreign currency;
 (x) you incurred the obligation, or the part of the obligation, in return for the creation or acquisition of a right to receive an amount of Australian currency or foreign currency;
 (xi) the obligation, or the part of the obligation, is under an option to buy foreign currency.
Note: For extended meaning of obligation to pay foreign currency, see section 775‑140.

Time of event
 (2) The time of the event is when you cease to have the obligation or the part of the obligation.

Forex realisation gain
 (3) You make a forex realisation gain if:
 (a) the amount you paid in respect of the event happening falls short of the proceeds of assuming the obligation or the part of the obligation (the proceeds are worked out as at the tax recognition time); and
 (b) some or all of the shortfall is attributable to a *currency exchange rate effect.
The amount of the forex realisation gain is so much of the shortfall as is attributable to a currency exchange rate effect.
Note 1: For proceeds of assuming the obligation, see section 775‑95.
Note 2: For tax recognition time, see subsection (7).
Note 3: For currency exchange rate effect, see section 775‑105.
 (4) You make a forex realisation gain if:
 (a) the event happens because an option to buy *foreign currency expires without having been exercised, or is cancelled, released or abandoned; and
 (b) if the option had been exercised immediately before the event, you would have been obliged to sell the foreign currency.
The amount of the forex realisation gain is the amount you received in return for granting or assuming obligations under the option.

Forex realisation loss
 (5) You make a forex realisation loss if:
 (a) the amount you paid in respect of the event happening exceeds the proceeds of assuming the obligation or the part of the obligation (the proceeds are worked out as at