Hi everyone,
I am preparing an Australian individual income tax return for a taxpayer operating a tour business in the USA. The taxpayer held USD funds in an overseas bank account for business operations and incurred a foreign exchange loss when the Australian dollar strengthened before the funds were converted back into AUD.
Would this foreign exchange loss generally be deductible under Division 775 of the Income Tax Assessment Act 1997 as a business-related forex loss, or could it instead be treated as capital or private in nature?
I would appreciate any guidance regarding the practical tax treatment, relevant ATO rulings, forex realisation events, or any other applicable provisions.
Thank you.
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20 views
1 replies