Is a foreign exchange loss deductible for business purposes under Division 775?

(Newbie)Newbie

11 May 2026

Hello,

I would like advice regarding the deductibility of a foreign exchange loss for income tax purposes.

A client operates a tour business and held [Removed by moderator].S. dollars in an overseas bank account for business-related travel expenses. Due to exchange rate changes, the client made a foreign exchange loss of AUD $816 when converting the unused foreign currency back to Australian dollars.

Can this foreign exchange loss be claimed as a tax deduction under Division 775 of the ITAA 1997?

Thank you for your assistance.

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