Australia's largest stock trading and investment forum Australia's #1 stock forum

Taxation of interest on Convertible Notes, page-7

First 7 Last

Share
Profile

Follow
Tarvold

28,103 Posts.

1368

20/04/21

19:23

Post #: 52602056
Share

Originally posted by Headhunter: ↑

If the interest component has "accrued" over the term of the notes instead of being paid, then there is a real possibility that the convertible notes will be qualifying securities and accrued interest and the gain on conversion will be assessable to you. It can be a bit complex to ascertain whether a security is a traditional security or qualifying security (as you will need to go through its terms etc. and convertible notes are generally different from company to company issuing them) so i suggest talking to an accountant regarding the correct treatment of your specific convertivle notes.

Expand

I found the answer on this page.
The convertible qualifies as a traditional security & therefore no gain is recognised on conversion & interest paid rolls over into the cost base.
https://www.ato.gov.au/Forms/You-and-your-shares-2020/?page=24

So that's good news
Upvote

Reply

Top Stories

RML

Resolution Minerals appoints industry experts to fast-track US growth strategy

CIA

'Share long-term visions': Champion Iron rallies on mooted Nippon, Sojitz partnership

ASX Market Close: How a megadam in Tibet pushed us into the red

FBU

Fletcher Building 'exploring options' around construction division sale

Listen: HotCopper Wire Podcast 018 – Potatoes, TACOs, and the $120M helicopter heist

First 7 Last