Open TurboTax

Why sign in to the Community?

  • Submit a question
  • Check your notifications
or and start working on your taxes
Close icon
Do you have a TurboTax Online account?

We'll help you get started or pick up where you left off.

cancel
Showing results for 
Search instead for 
Did you mean: 
bob2731
Level 2

Which rate do I use when reporting a foreign exchange gain or loss?

When I converted my foreign currency to Canadian dollars, I had a reportable capital loss (i.e. greater than $200), and I'm wondering which exchange rate do I use. Here's a scenario similar to the one I need to capture in TurboTax Premier:

 

- I received a 10,000 GBP lump sum from a UK RRSP/Personal Pension.

 

- On the day the funds went into my GBP account, the BoC GBP-CAD exchange rate was 1.70.

 

- The amount of foreign income received will be reported in my tax return as 10,000 with an exchange rate of  1.70.

 

- Some months later, I withdrew the funds in CAD. The BoC exchange rate on that day was 1.6, but the bank/broker used an exchange rate of 1.55.

 

- If I use the BoC exchange rate, my reported loss would be: $1,000 (10,000 x 1.7 - 10,000 x 1.6), however, my actual loss is $1,500 (10,000 x 1.7 - 10,000 x 1.55).

 

When entering the information into TurboTax to report the capital loss, do I use the BoC exchange rate for the GBP-CAD conversion, or do I use the actual bank/broker exchange rate? And, if I must use the BoC rate, can I claim the difference I received (i.e., $500) in the Outlays and Expenses box?

1 Reply
TurboTaxGinette
Moderator

Which rate do I use when reporting a foreign exchange gain or loss?

Please see our TurboTax FAQ for information about this: How do I report foreign income, pension, and other foreign amounts?

 

Thank you for choosing TurboTax.

About Community

Learn about taxes, budgeting, saving, borrowing, reducing debt, investing, and planning for retirement.

3.49m
Members

2.62m
Discussions

v