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Suppose you engage in the following investment transactions while a Canadian resident:

  1. (Buy MSFT) Trade Date: Jan 1st. Settle Date: Jan 3rd.
  2. (Sell MSFT) Trade Date: Jan 10th. Settle Date: Jan 12th.

When converting cost basis and proceeds from USD to CAD for the CRA. Which days are you supposed to use for the official exchange rate for buying and selling respectively?

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You report your gains based on the transaction settlement(*) date.

(*) from your comments this is the official CRA position.

This is actually quite unusual, from my experience in the US and several other countries.

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  • I asked this question because I saw some articles online that said I was supposed to use the settlement date instead. Was this a stale judgement?
    – AlanSTACK
    Commented Jul 13, 2023 at 18:28
  • Looks like as of 2012 the Canadians do indeed consider settlement date as the date of disposition.
    – littleadv
    Commented Jul 13, 2023 at 19:37
  • You think we should use settlement date for both BUY and SELL? Or only for SELL?
    – AlanSTACK
    Commented Jul 13, 2023 at 19:52
  • I would argue that you should be consistent, but I guess you'd probably want to chat with a Canadian accountant
    – littleadv
    Commented Jul 13, 2023 at 20:08

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