The losses arising from changes in foreign currency exchange rates tax deductible?

 Author: AnitaATO(Community Support)Community Support

16 Oct 2023

Hey @N-Z,

Whether you can claim a deduction depends on your circumstances. There are 5 different realisation events which have their own rules when it comes to being able to claim a deduction for foreign currency exchange rates. A couple of examples where you won't be able to claim are deduction are:

• it's a loss of a private or domestic nature.
• it's a loss you make to an extent that it's made in gaining or producing exempt income or non-assessable non-exempt income.

To read more about what exemptions apply to which realisation events you may like to check out all the information available on our Legal database.

There is also more information on our website about foreign exchange gains and losses.