Canadian resident & taxpayer, US Citizen & taxpayer.
Received inheritance in UK, put in UK savings account. Exchange rate about 2:1 pounds to US$ at the time.
Now want to repatriate funds to US account. Exchange rate 1.5:1. ie the funds have lost about 25% in US$ terms, somewhat less in Canadian dollar terms since the Canadian dollar has also fallen against the US$.
Do I have a capital gains loss for tax purposes in Canada and US?
Tax loss on exchange?
Moderator: Mark T Serbinski CA CPA
Yes, The moment you change these GBP into any thing else (currency, a car, anything) its a capital gain or loss based on the original and the proceeess.
The gain would be calculated in C$ for your Cdn return and in USD for your 1040.
That means knowing the value in C$ and US$ on the day you bought, and then in both currencies on the day you exchanged them for something else.
The gain would be calculated in C$ for your Cdn return and in USD for your 1040.
That means knowing the value in C$ and US$ on the day you bought, and then in both currencies on the day you exchanged them for something else.
After 20 years, I am severely cutting back on responses. Do not ask specifically for my help. There are a few others on this board that can answer most questions. All the best