Skip to main content
Personal Finance & Money

Return to Question

Tweeted twitter.com/StackFinance/status/971331993765064711
added 56 characters in body; edited tags; edited title
Source Link
Chris W. Rea
Chris W. Rea
  • 31.8k
  • 17
  • 103
  • 190

Investment Taxes on investments denominated in a foreign currency taxes

I am having issues determining if I need to declare gains or losses on my taxes.

Suppose I had $500 and converted to Brazilian reaisreals at the rate 1 to 2, so R$1000 and with that money I bought some investment X. After a couple of years investment X is worth r$ 1300R$1300 but currency is now 1 to 3, so while I make R$300, when I bring it back to the USU.S. I actually have only have less than $430.

i.e. I lost in net, but the investment have me positive results in another currency. For taxes, is this a capital loss or a capital gain?

Investment in foreign currency taxes

I am having issues determining if I need to declare gains or losses on my taxes.

Suppose I had $500 and converted to Brazilian reais at the rate 1 to 2, so R$1000 and with that money I bought some investment X. After a couple of years investment X is worth r$ 1300 but currency is now 1 to 3, so while I make R$300, when I bring it back to the US I actually have only have less than $430. I lost in net, but the investment have me positive results in another currency.

Taxes on investments denominated in a foreign currency

I am having issues determining if I need to declare gains or losses on my taxes.

Suppose I had $500 and converted to Brazilian reals at the rate 1 to 2, so R$1000 and with that money I bought some investment X. After a couple of years investment X is worth R$1300 but currency is now 1 to 3, so while I make R$300, when I bring it back to the U.S. I actually have only less than $430.

i.e. I lost in net, but the investment have me positive results in another currency. For taxes, is this a capital loss or a capital gain?

Source Link
AliceCarramenha
AliceCarramenha
  • 31
  • 1

Investment in foreign currency taxes

I am having issues determining if I need to declare gains or losses on my taxes.

Suppose I had $500 and converted to Brazilian reais at the rate 1 to 2, so R$1000 and with that money I bought some investment X. After a couple of years investment X is worth r$ 1300 but currency is now 1 to 3, so while I make R$300, when I bring it back to the US I actually have only have less than $430. I lost in net, but the investment have me positive results in another currency.