Determining the basis for capital gain
If the value of the US dollar is greater than what I originally exchanged it for, is it considered capital gain? If so, how do I determine the amount I gained?
EDIT:
For example, I traded 0 USD for Mexican pesos. I spent some of that money (logically I now have less than 0 USD). But for some reason, the value of the peso skyrocketed so when I go to trade my remaining pesos for USD, I get back 00.
(1)1 Comments
Sorted by latest first Latest Oldest Best
If you make money in currency speculation (as in your example), that is a capital gain.
A more complicated example is if you were to buy and then sell stocks on the mexican stock exchange. Your capital gain (or loss) would be the difference in value in US dollars of your stocks accounting for varying exchange rates. It's possible for the stocks to go down and for you to still have a capital gain, and vice versa.
Terms of Use Privacy policy Contact About Cancellation policy © freshhoot.com2026 All Rights reserved.