Is loss from foreign currency exchange deductible?

 Author: K2345(Newbie)Newbie

13 Apr 2026

Hi, I wanted to seek clarification on whether loss from foreign currency exchange rate fluctuations are tax deductible under Division 775.

I understand that forex realisation events may trigger deductions but I am unsure how to apply these rules correctly.

i cloud use some clarification on

1) How to determine if a forex loss is revenue or capital in nature?

2) How timing rules apply when recognising a forex loss?

3) What records and evidence is important in supporting the deduction?

Any guidance would be greatly appreciated

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