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T1135 Currency conversion

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(New edited version--the FAQ I previously quoted is not relevant because I have a T5 and reported my US dividend income there). My problem only concerns the T1135 page. I'm asked to report my US income there but there's no box for currency conversion. Do I use the US value or convert to CAD?

Edited by QuebecCanuck
Further consideration of my problem

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Yes, thank you. I had thought it possible that once I had entered the conversion for US funds for a T5 slip, it would make the conversion everywhere. But this doesn't seem to be the case. It's a curious omission in the programme that it neither does this for you nor warns that you will have to do it yourself. I bet that this conversion is often missed.  UFile, are you listening? [probably not :-( ]

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There are different conversion rates used for different things. There is the annual forex rate for 'recurring income', i.e. foreign income on tax slips like T3 and T5,  but entirely different forex rates for cap gains/loss transactions on Schedule 3 (these are based on date of settlement of the acquisition and date of settlement of the disposition), as well as different forex rates for different data boxes on the T1135.

For example, on T1135, in filling out Category 7, to find the 'Maximum Market Value' during the year, you have to look at the month end value of your USD domiciled securities for each month of the calendar year and apply the monthly forex rate used by Bank of Canada, not annual rate.  And then for the Market Value for end of year, you have to apply the Bank of Canada December forex rate.  You could have 3 different forex rates used in Category 7 on the T1135.

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