Hi, I need help with a foreign currency issue for a small business client.
My client held USD for business purposes (to pay suppliers). When the AUD increased, she converted the USD back to AUD and made a realised loss of $816.
I have read the ATO guidance on Division 775, but I want to confirm my understanding.
- Is this realised foreign exchange loss deductible as a business expense?
- Should it be reported as a forex realisation loss in the tax return?
- Is there anything I should be careful about when claiming this?
I would appreciate advice from international tax specialists or anyone experienced with Division 775.
Thank you.
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