# CG on currency?



## kid5022 (Nov 14, 2010)

I was wondering if there are any cg on currency?

ie 1000 cad to 1000 usd, after a few months 1000 usd to 1010 cad. $10 profit in terms of cad.

Also what about items that are legal tender(money) in Canada?

same example as above, but the usd become some other money in Canada


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## MoneyGal (Apr 24, 2009)

Yes, it is a capital gain; but no, in the example you gave, it isn't taxable. 

Here's the relevant info from the CRA circular: 

_*Foreign exchange gains and losses
*
Foreign exchange gains or losses from capital transactions in foreign currencies are considered to be capital gains or losses. However, you only have to report the amount of your net gain or loss for the year that is more than $200. If the net amount is $200 or less:

there is no capital gain or loss; and you do not have to report it on your return._

Read the whole Capital Gains guide here: http://www.cra-arc.gc.ca/E/pub/tg/t4037/t4037-e.html#P637_60798


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## kcowan (Jul 1, 2010)

I use the June 30th rate for all my FX reporting. They accept this because it is consistent and simple. The alternative is a lot of work.


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## el oro (Jun 16, 2009)

Is the June 30th method an acceptable way of recording foreign stock/option capital gains as well? Or is there another way besides accounting for exchange rate at time of each trade?


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## humble_pie (Jun 7, 2009)

there are lots of sub-methods. One just has to choose one & be consistent.

one can use bank of canada noon rate - or closing rate - on the date of settlement of each transaction. What a pain.

or one can use the monthly average BOC rate.

or one can use the annual bank of canada average rate, which they publish in january of the following year.

the advantage of using the june 30 rate as the annual rate for all transactions, i would imagine, is that it is known as of june 30 each year. All subsequent transactions during the remaining 6 months of the year can be priced in, as they occur, at this rate. By contrast, using the official BOC annual rate means waiting to finalize all calculations until it appears in january of the following year.


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## el oro (Jun 16, 2009)

Thanks hp


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