My T5008 shows US transactions on average exchange rate not day rate. Can I enter day rate?.

[edithdirect]

How do I get Turbo Tax to accept change in T5008?

[TurbotaxRobert · Accepted solution]

You can choose to enter your US transactions on the CDN $ day rate conversion rate if you know the actual settlement dates of your transactions (and the exchange rates for those dates).  For purposes of simplification, CRA will accept the 2017 average US to CDN exchange rate to be used for purposes of reporting US denominated transactions in CDN funds for tax purposes.  For 2017, the avg exchange rate that applies (per Bank of Canada) is US $1.00 = CDN $1.2986.

[Babarske]

Here's what I gathered based on my conversation with a senior CRA rep:

1. You need to report all foreign currency (e.g. USD$) capital gains/losses in CDN$
2. For conversion from USD$ -> CDN$ it is best to use the exchange rate on the day of transaction, however, it is also acceptable to use the average exchange rate of the period in circumstances where the date of the transaction is not available (e.g. T5)
3. You're allowed to modify the "Cost Basis" and "Proceeds" directly in the downloaded T5008. These slips are used as input to calculate the amounts on Schedule 3
4. You may also need to convert other tax slips like T3 and T5 if the amounts are in USD$ or another foreign currency

My next question is, why doesn't TurboTax guide users to pay particular attention to the foreign currency slips / transactions and facilitate conversion to CDN$?  @TurbotaxRobert ?

[TurboTaxSusan]

I have passed on your comments to our product development team, along with a suggested to add more guidance in this matter.

Thank you for your input.
 

[Angi2]

For 2022 I have a T5008 slip all items in US$ and losses, except one profitable item. I transported all items from My Account at CRA. Would it be ok to delete the one profitable item from the list and add extra this item in CAD as a new T5008?

I hope someone has an answer. Thank you in advance

Angi2.

[Babarske]

You should convert ALL US$ T5008s into CAD to calculate both gains and losses. It doesn't matters whether the T5008 is downloaded or manually entered, since it is used an input to calculate Schedule 3. The key is to calculate your cost basis and proceeds accurately and have the supporting documentation ready should you get audited.

Babarske