Calculating cap gains in forex

Discuss all general (i.e. non-personal) investing questions and issues, investing news, and theory.
Post Reply
tenkuky
Posts: 566
Joined: Sun Dec 14, 2014 4:28 pm

Calculating cap gains in forex

Post by tenkuky » Sat Jul 28, 2018 7:05 pm

Situation is individual stocks sold in an international account with long-term cap gains released.
However, foreign exchange rates have also changed over period of holding.
What is the best way to report these at tax time?
1099s are not issued, so taxpayer has kept meticulous records of purchase date and price and sale date and prices. This should not be a problem with tax software, as I believe they permit checking box "no 1099-B".

Should conversion rate be calculated at each point (purchase and sale) and converted accordingly, using Treasury Forex historical rates?
Or only do the forex conversion rate on the date of sale?
The foreign country does not have tax applied for LTCG so it is only US reporting.
Account has been FATCA declared but this is the first year with actual cap gains/transactions needing reporting.

Thanks!

Post Reply