I have a tax query. I trade stock options in the US market so have exchange rate (ER) complications for calculating NZ tax. I am calculating tax on monthly profits/losses based on the varying mid month ER value provided by the tax dept. Is this correct?
Also, how must any ER advantage/disadvantage from opening balance to closing balance in my trading account for the the tax year be taken into account? Is this shown as a tax gain/loss or taken into account in my books of account as a capital gain/loss. I presume I would use the ER provided by the IRD at opening and closing day dates for the tax year?
Any advice much appreciated thanks
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