Foreign rental income and expenses must be reported in Australian dollars (AUD) when preparing your Australian tax return.
In TaxTank, there are two ways to manage your foreign property transactions.
Option 1: Add a foreign bank account (recommended)
If your overseas bank is supported, you can connect the live bank feeds to your property. Or alternatively you can add a manual bank account and import foreign bank transactions via csv.
When you allocate foreign bank transactions:
The original foreign currency amount is retained.
The transaction is automatically converted to AUD using the exchange rate for the transaction date (you can override the exchange rate if required).
The converted AUD amount is used for tax reporting and calculations.
This is the easiest option if most of your rental income and expenses are paid through a foreign bank account.
Option 2: Enter transactions manually
If you don't have a specific bank account, you can enter your rental income and expenses directly. Simply:
Open your property.
Select the Income or Expenses tab.
Add the transaction, ensuring the transaction amount is entered in AUD.
FAQs
Q: Do I need to enter foreign amounts or Australian dollars?
A: If you add a foreign bank account (either live or manual). TaxTank automatically converts transactions to AUD when they are allocated, using the exchange rate as at the transaction date. Alternatively, if you're adding income and expenses transactions at the property level, you need to enter the transaction amount in AUD.
Q: Can I change the exchange rate?
A: Yes. By default, TaxTank uses the exchange rate for the transaction date to convert foreign currency transactions into AUD. If you'd prefer to use a different rate, you can simply override it before saving.
Q: Which option should I use?
A: Add a foreign bank account if you receive and pay most transactions through your overseas bank. Use manual entries if you don't have a supported bank connection or only have a small number of transactions to record.