Stock Trades in Euro

Forum|Forum|4 years ago
February 7, 2022
1 reply
7 views

I have a client that bought a stock in Euro in two purchases over time. They sold the stock several years later. How do you calculate the gain or loss? Do I need to convert each puchase to US dollars at the exchange rate at the time and convert the sale price at the converation rate at the sale date? Or do I just calculate the gain or loss in Euro and then convert it to USD at the sales date conversion rate?

ProSeries Professional

This topic has been closed for replies.

Best answer by George4Tacks

I am rejecting Door #2 "Or do I just calculate the gain or loss in Euro and then convert it to USD at the sales date conversion rate?"

I do so because that would ignore any gain or loss involved in exchange rate.

How much did the invest cost in US $. How much was the sales price in US $. That difference would be the gain to report on the US tax return.

George4Tacks

Level 15

Door #1. Compute actual $ cost basis and actual $ sales price.

Answers are easy. Questions are hard!

M

MontyAuthor

Level 2

Whats behind door number 2?

Can you use the Euro's and convert at the end or take an average exchange rate?

Thanks

George4TacksAnswer

Level 15

I am rejecting Door #2 "Or do I just calculate the gain or loss in Euro and then convert it to USD at the sales date conversion rate?"

I do so because that would ignore any gain or loss involved in exchange rate.

How much did the invest cost in US $. How much was the sales price in US $. That difference would be the gain to report on the US tax return.

Answers are easy. Questions are hard!

Sign up

Login with SSO

Let's get you signed in

Login with SSO