Deductability of losses on bonds

[Snoopy]

If you check out the IRD link and the legislation get back to me if you still disagree and point out what your own "opinion" is based on.

Form IR3G, p35 'Sale or Maturity of Financial Arrangements'. "Total gains and losses from the financial arrangment are brought to account. This applies in every case - you don't have to be in the business of buying or selling financial arrangements, or have bought them for the purpose of resale, as you would with shares."

SNOOPY

[Snoopy]

http://www.ird.govt.nz/news-updates/...o-invests.html

Thanks for the reference Aaron. Interesting, I wish you had put it up the first time. Potentially claiming 100% capital bond losses on a company that has gone bust is a different abnormal situation. That is perhaps why IRD put out your referenced bulletin?

SNOOPY

[Aaron]

Sorry I only bothered to learn how to insert the link after I got riled by your critisism. If you go from pg 35 of the IR3G and use the IR3K to make your calculations you will see a note on the back about a decline in creditworthiness affecting the calculation.

I suppose you could argue that the finance companies without a rating from a recognised credit rating agency had no creditworthiness at any stage so the losses weren't due to an actual decline in their creditworthiness.