How to handle them
Most people don't track foreign transaction fees separately. They're usually included in the total charge on your credit card statement. You can either:
- Include the fee as part of the underlying business expense (simplest approach)
- Track fees separately as a bank/processing fee category
Either way, the full amount you paid (including the fee) is deductible if the underlying purchase was for business.
Getting a no-FTF card
Many business credit cards waive foreign transaction fees entirely (Chase Ink, Capital One Spark). If you make frequent international purchases, switching cards saves 1-3% on every transaction and eliminates the tracking question entirely.
IRS Reference
Foreign transaction fees are bank fees, deductible under IRC Section 162. Report as part of the business expense or on Schedule C, Line 27a (Other expenses).
Foreign transaction fees are bank fees, deductible under IRC Section 162. Report as part of the business expense or on Schedule C, Line 27a (Other expenses).
Track international charges
Hivebooks categorizes all your business purchases, including international ones, automatically.
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