Hi @Karima19,
Yes, you can claim a foreign exchange loss under Div 775 if it arises from a forex realisation event.
A forex realisation event occurs when you dispose of foreign currency or cease to have a right or obligation to receive or pay foreign currency. In your case, converting USD funds back to AUD would trigger forex realisation event 1 (disposal of foreign currency).
Some forex losses aren't deductible, such as those of a private or domestic nature or those relating to exempt income. The connection to your small business activity is relevant in determining deductibility.
Section 8-1 may also apply as an alternative basis for deduction if the loss was incurred in gaining or producing assessable income from your business.
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