How Is Currency Conversion For Buying Stock On A Foreign Exchange Handled On An Individual’s Tax Return?



I purchased stock on the Canadian exchange by converting U.S. $ to Canadian $. Then I sold the stock on the Canadian exchange and converted the Canadian $ back to U.S. $. I have commissions associated with the exchange as well as a loss from the change in the exchange rate. How do I handle these two items? Do I just adjust the cost basis of the security when reporting gains/losses for Schedule D?


  1. the tax lady Says:

    You use the USD equivalent on the day you bought the stock.
    You use the USD equivalent on the day you sold the stock.
    Plug these numbers into schedule D to determine your gain or loss.

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