caculating foreign exchange gain tax

[kennyboy]

I opened a foreign exchange account ($A) and I think any gain is taxable.True? How do i calculate the gain?

[shasta]

I opened a foreign exchange account ($A) and I think any gain is taxable.True? How do i calculate the gain?

Hi Kennyboy,

If you have opened the account to trade in FX - then yes gains will be taxable, if you have set up the a/c to hold funds to invest in stocks in that exchange/currency it wont be.

As an individual u account for gains & losses on a realised basis, meaning only completed trades buy/sell will count, not unrealised positions.

Depends if you trading FX, or buying stocks (or a mix of both) for how to calculate gains, its not too difficult & if u posted your actual trades/intentions others will be able to help

[kennyboy]

I put $A dividends in and buy occassioanl A shares. No FX trading. Interest accumulates as well.

[shasta]

I put $A dividends in and buy occassioanl A shares. No FX trading. Interest accumulates as well.

You will need to account for the FX gain/loss along with declaring the dividends, probably easiest to keep a record of all ins & outs on a spreadsheet, as each transaction will hold all the details of the FX rate used on the day, u just then need to use the FX rate at 31 March 2012, on the balance of cash in the a/c

[kennyboy]

Thanks that looks maneagble as you say using a spreadsheet. I'll get into it Cheers.

[shasta]

Feel free to post questions, or message me if you prefer