Originally Posted by
SBQ
Short answer is no tax on exchange rate. In fact, if you can prove there was NO intention to profit on the US investments, you would have no tax whatsoever to pay as you're well under the $50K NZD threshold before FIF kicks in. Keep in mind, foreign dividends are still taxable. <br>
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If i'm not mistaken, the exchange rate is factored at the end when you have declared a profit. That is any differences in gain or loss, you would factor that into the final calculation for the tax year if you had a gain or a profit. No one makes trades without factoring exchange rate loss or gain so from IRD's point of view, they only want to know the end amount of the total in NZD.
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