Foreign currencies
Foreign exchange gains or losses from capital transactions of foreign currencies (that is money) are considered to be capital gains or losses. However, you must only report the amount of your net gain or loss for the year that is more than $200. If the net amount is $200 or less, there is no capital gain or loss and you do not have to report it on your income tax and benefit return.
Report your net gain or loss in Canadian dollars. In general, the foreign currency amount should be converted using the Bank of Canada exchange rate in effect on the day of the transaction.
Alternatively, the CRA will also generally accept a rate for that day from another source if it is:
- widely available
- verifiable
- published by an independent provider on an ongoing basis
- recognized by the market
- used in accordance with well-accepted business principles
- used to prepare financial statements (if any)
- used regularly from year to year
Other sources that the CRA would generally accept include rates from Bloomberg L.P., Thomson Reuters Corporation and OANDA Corporation. In certain circumstances described in the Income Tax Folio S5-F4-C1, Income Tax Reporting Currency, an average rate may be used to convert foreign currency amounts. Also refer to that Folio for more information about this or converting foreign amounts generally.
Completing your Schedule 3
You have to complete Schedule 3 to determine your taxable capital gains or your net capital loss.
Complete Period 1 for dispositions from January 1 to June 24, 2024. Complete Period 2 for dispositions from June 25 to December 31, 2024. Report dispositions for Period 1 on lines 10693 and 10694 of Schedule 3, and report dispositions for Period 2 on lines 15199 and 15300.
Forms and publications
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