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posted Apr 10, 2021 10:02:41 PM

Foreign exchange: Can all transactions through the year for a single currency be reported in a single capital gains entry as net ACB/Proceeds?

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Level 4
Apr 12, 2022 9:49:07 AM

As per the Canada Revenue Agency (CRA), "Foreign exchange gains or losses from capital transactions of foreign currencies (that is, money) are considered to be capital gains or losses. However, you only have to report the amount of your net gain or loss for the year that is more than $200. If the net amount is $200 or less, there is no capital gain or loss and you do not have to report it on your income tax and benefit return.

You must also report your net gain or loss in Canadian dollars." (Article: CRA - Foreign Currencies)

 

As CRA does not indicate how exactly they want it reported, you may do it this way; however the single entry must encapsulate all of the:

- Proceeds

- Adjusted Cost Basis'

- Capital Gain/Loss

- And lastly the Quantity bought/sold.

 

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