Capital Gains in USD

[Mr.Riverview]

HI. I have a USD account. I buy and sell stocks in USD (not just CDN).

I can easily enter stocks I buy and sell in CDN in the CAPITAL GAINS AND ABIL portion of the program. Why is there not a currency function in here to say the stocks are in USD, with a conversion factor??? Or where/how do I enter these transactions???

This should be very simple but your software does not have this option?? Help!!

PS. this should not have to be reported in FOREIGN INCOME AND PROPERTY.... no!! Many of these stocks are Canadian, just traded in CDN or USD. Very simple. Do you expect me to convert ALL my stock trades and fees to CDN to enter them?? That would be so stupid.

[Curmudgeon]

Foreign trades have to be reported in $CDN. There is no currency function in software for this reason:

Converting Foreign Amounts to Canadian Dollars

The foreign exchange rate used to convert the foreign currency transaction into Canadian dollars is either

	the rate in effect on the date of the transaction, or
	the average annual exchange rate for the taxation year

as quoted by the Bank of Canada on the particular day or on the closest preceding day for which a spot rate is quoted, as per the definition of "relevant spot rate" in s. 261(1) of the Income Tax Act.

When assets, including investments, are purchased or sold, the exchange rate in effect on the date of the transaction should be used.  Dividends received throughout the year can be converted at either the transaction date rate or the average annual exchange rate for the taxation year, but the method used should be consistent from year to year.

 

The Income Tax Act says to use the relevant spot rate for the day on which the particular amount arose, for converting to Cdn$.  Whether you use the settlement date rate or the trade date rate, you should be consistent in doing this for all purchases and disposals in every year.  Regardless of which date is used for the exchange conversion, the settlement date is the date of acquisition or disposition.

CRA previously indicated in their information on Line 12700 capital gains (this is the old web page from September 26,  2022, from archive.org) that the exchange rate or annual average exchange rate in effect at the time of the sale could be used when converting the proceeds of disposition (not cost of purchases) to Canadian dollars. This information has now been removed from their information on Line 12700 capital gains, so it would not be advisable to use the average rate for converting proceeds.

https://www.taxtips.ca/filing/reporting-foreign-transactions.htm

[Mr.Riverview]

How to enter that into Ufile??

[Geo123]

 

Hello Mr.Riverview,

For a T5 :

Enter an exchange rate ONLY when your slip shows a currency code in Box 27. The average exchange rate for $US was 1.3013 in 2022, See the Bank of Canada's website (www.bankofcanada.ca) for other exchange rates.

 Exchange rate applying to ALL currency amounts recorded on this slip
 RL-3 Box 200 - Name of currency used200

For a T5008 :

 

Foreign currency13 USD United States, dollar <---EXAMPLE USD

Cost or book value20 
Exchange rate applicable to the cost or book value
 
Proceeds of disposition or settlement amount21
Exchange rate applicable to the proceeds of disposition or settlement amount
 
Outlays and expenses related to the transaction
Exchange rate applicable to the outlays and expenses related to the transaction