When does a qualifying forex account pass the limited balance test?
Basic rule (1) For the purposes of this Subdivision, a * qualifying forex account that you hold passes the limited balance test at a particular time if, at that time: (a) an election made by you under section 775‑ 230 has effect in relation to: (i) the account; or (ii) the account and one or more other * qualifying forex accounts; and (b) the total of the credit balances of the account and each of those other accounts (if any) is not more than the * foreign currency equivalent of $250,000; and (c) the total of the debit balances of the account and each of those other accounts (if any) is not more than the foreign currency equivalent of $250,000. Note: For buffering during an increased balance period, see subsections (2) and (3). Buffering during first and second increased balance period (2) For the purposes of this section, an increased balance period is a continuous period consisting of: (a) an income year; or (b) a particular part of an income year; where, at each time during the per
