Currency Exchange Losses

Badger · Post by **Badger** » Thu Nov 22, 2007 1:10 pm

I repatriated to Canada last year. I didnt convert all of my USD into Canadian funds. Given the recent exchange rate variation should I convert some monies now would I would able to claim the loss (eg the published rate on my repatriation date versus the current going rate) on my Canadian return and if so how would I go about doing it?

Thanks

nelsona · Post by **nelsona** » Thu Nov 22, 2007 3:50 pm

Your USD are treated like a 'stock' which had a value on the day you enterd (say 1.20 CDn). if you convert today, you can clim a loss of about 20c per dollar you convert.

You track it like any other mutual fund. the only difference is that transactions that net les that $200 loss or gain are ignored. So make sure you convert at least $2000US at a time.

nelsona · Post by **nelsona** » Thu Nov 22, 2007 3:51 pm

Notethatthis applies whether you convert the $2000US into Cdn dollars, euro, or go out and buy a $2000 jewelry. It is the chnage from US cash to anything else that triggers the currency loss.