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Reporting Foreign Transactions

By  External Author |   | Posted in " Tax & Benefits, tax accountant "

TaxTips-ca-Reporting-foreign-amounts-on-your-Canadian-income-tax-return.png

When foreign amounts, including purchases and sales, income, expenses, and foreign taxes paid, are reported on your Canadian personal or corporate income tax return, they must be reported in Canadian dollars.

Sales of investments are reported on Schedule 3 of the personal tax return, in Canadian dollars.  The adjusted cost base (ACB) of the sold investment is also recorded in Canadian dollars, using the exchange rate from the date the investment was purchased.  If you have non-registered investments held in US$, it's very important to keep accurate records of the date the investments were purchased, and the exchange rate on that date, to calculate your Canadian dollar ACB.  Your US$ brokerage statements will show you the US$ ACB of your investments, but will not show you the Cdn$ ACB.  The T5008 and Trading Summary provided by your brokerage will show the US$ proceeds and cost, but you must convert these amounts to Cdn$ using the exchange rate from the sale and purchase dates.  Note that the T5008 proceeds may not be net of commission (commission may be shown separately), but the Trading Summary shows the net proceeds after commission is deducted.

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Original Article Source Credits:   Taxtips , https://www.taxtips.ca/

Article Written By:  NA

Original Article Posted on:  April 23, 2021

Link to Original Article:  https://www.taxtips.ca/filing/reporting-foreign-transactions.htm

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