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artifish
New Member

If I hold money in a foreign bank account and encountering a loss (gain) due to currency exchange rate change from the foreign currency to CAD, should I declare this?

 
4 Replies
Tatsiana_Cherviakova
Level 4

If I hold money in a foreign bank account and encountering a loss (gain) due to currency exchange rate change from the foreign currency to CAD, should I declare this?

This loss does not need to be reported. Moreover, this is unrealized loss as long as you keep money in foreign currency. You will know accrual loss amount only when you will convert this funds in CAD. However even then it is not  reported on your tax return.

bob2731
Level 2

If I hold money in a foreign bank account and encountering a loss (gain) due to currency exchange rate change from the foreign currency to CAD, should I declare this?

The response to the TurboTax user's question does not seem correct to me. It states "However even then it is not reported on your tax return." I believe it does have to be reported, especially if there is a gain of greater than $200 CAD. If you want to capture the loss (also of greater than $200) the you should include the loss in the tax return.

bob2731
Level 2

If I hold money in a foreign bank account and encountering a loss (gain) due to currency exchange rate change from the foreign currency to CAD, should I declare this?

Further to my thought above, the gain/loss trigger is not just the conversion to CAD. It could be that you used it to buy a vehicle in the same currency, or even converted the funds to a different currency.

 

I'm not an expert, but this is my understanding from reading lots of material on the topic. I'm happy to be corrected, because I like to know I'm on the right track.

TurboTaxBrenda1
Moderator

If I hold money in a foreign bank account and encountering a loss (gain) due to currency exchange rate change from the foreign currency to CAD, should I declare this?

Thank you for your feedback. 

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