deductions for a business expense

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(Newbie)Newbie

3 May 2025

Hi,

a small business recently paid an overseas supplier in US dollars for a tour-related service.

Due to changes in the exchange rate between the invoice date and payment date, they incurred a foreign exchange loss.

Can this loss be claimed as a tax deduction under

section 77530 of the ITAA 1997 ?

The expense is directly related to the business operations and supported by bank records and receipts.

Thanks for your guidance.

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(Community Moderator)Community Moderator

12 May 2025

Yes, the business can deduct the loss if the situation meets the conditions set out in a foreign exchange event.

If you're still unsure how this applies to your business, you can ask us for tailored tax advice.

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