Hi there, first off I would like to thank the board for the bits and pieces of information I have gleaned from here over the years.
OK my scenerio,
Sole Proprietorship, earning USD from selling products in the United States. USD is deposited into a USD account. I then transfer it to my US dollar margin account before finally doing norberts gambit to convert it to CAD.
My question is do I calculate my earnings everyday based on the BOC conversion rate and use that to calculate my gross income as I still have USD earned from 2017 not yet converted to CAD.
Then, does the loss via norberts gambit get put in the "other business expenses" box? I would rather claim it against my income in the business than as a capital loss...
Sole Proprietorship - Currency Conversion Question
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Re: Sole Proprietorship - Currency Conversion Question
I would say that your foreign exchanges losses (and/or gains) are on "income account" rather than "capital", since your USD arise from carrying on a business.
So they would be an 'other business expense' on your T2125 Statement of Business Activities.
So they would be an 'other business expense' on your T2125 Statement of Business Activities.