# Professional dues



## leeder (Jan 28, 2012)

I have some professional dues that I would like to deduct. However, the amount that I paid is in US dollars. For tax reporting purposes, do I convert the USD to CAD using the daily noon rate as at the date I paid the due or the annual average noon rate? Thanks.


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## My Own Advisor (Sep 24, 2012)

I know for small business leeder, CRA allows you to use average rate by BoC during the year to determine USD > CAD income, if income was earned throughout the year:
http://www.bankofcanada.ca/rates/exchange/

If it was a one-time fee, I'm pretty confident the noon rate on the date paid would be acceptable although I don't know for sure. That would be very accurate.


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## Ponderling (Mar 1, 2013)

I just report the equivalent amount charged in Canadian dollars on my credit card statement, and have not ran into problems.


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## JordoR (Aug 20, 2013)

Ponderling said:


> I just report the equivalent amount charged in Canadian dollars on my credit card statement, and have not ran into problems.


This is what I do as well.


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## tenoclock (Jan 23, 2015)

if it's a one time payment and the exchange rate is easily available for that day, you are technically required to use that, instead of the yearly average for CAD/USD. Or as other posters have said, what was charged on your credit card in Canadian (since that may include fx conversion fee)

I personally would use whichever fx rate gives a bigger deduction to buy me a few extra coffees. The amount of the difference is probably not very material to the CRA.


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## OurBigFatWallet (Jan 20, 2014)

You use the daily noon rate on the date that you paid. If you paid via credit card and it was automatically converted to CDN you use the actual amount paid in CDN


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## Allan Madan (Jan 23, 2015)

I would advise to use the yearly average exchange rate as listed on the bank of Canada's website.


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## WiseOwl (Jan 1, 2015)

If you only ever have one time transactions during the year, the daily noon rate on the date paid would make the most sense and is generally acceptable (as OurBigFatWallet has articulated). 

If you regularly earn income and incur deductions against that income over a period of time, the average exchange rate makes more sense and is generally accepted by CRA.

As AltaRed points out (below) you can't cherry pick; however, either method when consistently applied is generally acceptable.


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## AltaRed (Jun 8, 2009)

I would be reluctant to use more than one method for normal income/expense items. CRA expressly says one cannot cherry pick, i.e. must use one method (transaction date) or BoC annual average. 

The exception is for buy/sell transactions which for cap gains/losses purposes is better based on transaction date data for the average investor (frequent traders likely different).


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## CPA Candidate (Dec 15, 2013)

You are deducting an expense, so deduct* the actual amount paid in CDN dollars.*


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