Hi Miranda.
As you received dividends that were reinvested you need to claim those dividends as foreign investment dividend income. You should use the rate of exchange applicable to the date you received them as well as for the tax withheld. Now you also need to keep track of the amount reinvested to be able to add it to the cost of the shares you own/purchased. That is for the future when you dispose of them.
Hi A Miranda. Nawal posted the following (reposted in Italics here) to another question on the forum
"To report your foreign income or foreign property, please follow the steps below:
1- In the "Left side menu on the Interview tab", please select "Interview setup". 2- On the right-hand side of the screen, go to the "Investment income and expenses" group, and check the box "Foreign capital gains"
3-To convert your foreign currency, enter the "Exchange rate to apply" to convert to Canadian dollars. Then enter the amounts in your foreign currency. The program will automatically convert the amounts to Canadian dollars. The amounts will appear in Canadian dollars in your tax return."
In this case you will need to determine the actual cost of what would be shares at the date you received them and also the Proceeds you received at the specific dates. Using the instructions as per Nawal you can enter the purchase Cost and Proceeds in US funds and find the exchange date for each item. The dates for the purchase as well as the sales will differ. Also for the tax withheld you can enter that at the exchange rate as per the sale date. The program will deal with the calculation for the Foreign taxes and any Foreign tax credits to be claimed on your Canadian return. Be careful to use the exchange rates correctly as the purchases may not have been in the same year as the sales. You can manually enter an exchange rate rather than selecting the pre imbedded rates.
