Unrealized Foreign Exchange
Moderator: Mark T Serbinski CA CPA
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- Posts: 24
- Joined: Sun Mar 30, 2014 4:21 pm
- Location: Canada
Unrealized Foreign Exchange
I am a US citizen who has been living in Canada since I was a child. All my financial accounts (checking account, and GICs) are in CDN$ only. I report to the IRS all interest that I earn. I never convert Canadian$ to US$. Are unrealized / accrued foreign exchange gains/losses on my checking account or GICs reportable to (and taxable by) the IRS?
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- Posts: 24
- Joined: Sun Mar 30, 2014 4:21 pm
- Location: Canada
Thank you Nelsona for your prompt reply.
Just to be sure I understand, if one of my Canadian GICs matures, and I deposit the proceeds in my Canadian checking account (in CDN$), I do not have to worry about an "unrealized" gain or loss in the value of the principle of the GIC relative to the US dollar which occurred over the term of the GIC? I am calling this "unrealized" because I never exchange CDN$ for US$. I only have to report the interest earned?
Just to be sure I understand, if one of my Canadian GICs matures, and I deposit the proceeds in my Canadian checking account (in CDN$), I do not have to worry about an "unrealized" gain or loss in the value of the principle of the GIC relative to the US dollar which occurred over the term of the GIC? I am calling this "unrealized" because I never exchange CDN$ for US$. I only have to report the interest earned?
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- Posts: 32
- Joined: Tue Mar 04, 2014 12:16 am
Wouldn't he be subject to FX gains or losses based on the US$ cost at which he acquired the CDN$, as of the time he disposed of the CDN$? (Assuming the transaction gain was over $200, of course.)
Or at least that's what I thought nelsona wrote here many moons ago: http://forums.serbinski.com/viewtopic.php?p=12900#12900
(Or is that discussion really only relevant to the RRSP book value calculation?)
Or at least that's what I thought nelsona wrote here many moons ago: http://forums.serbinski.com/viewtopic.php?p=12900#12900
(Or is that discussion really only relevant to the RRSP book value calculation?)
We are talking GICs here. That is considered cash. The GIC would be lumped in with ALL Cdn cash he EVER recieved. It is unrealistic to come up with an average cost basis in USD of every CDn penny he ever made.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing