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Tax on International Shares

Discussion in 'Accounting, Tax & Legal' started by sandeep, 25th Jul, 2011.

  1. sandeep

    sandeep New Member

    25th Jul, 2011
    Hi There

    I know there are some threads around CGT on international shares, but I have a bit more complicated situation. I have got shares with American Broker with whom I am buying the shares in Canada, US, Australia. But for the simplicity sake lets take that I have invested only in Canada and US through this American Broker. Now when I sent my money few years back lets assume I sent around AUD 50,000 and my US account was credited with USD 35,000. I converted that to CAD and Recd 40,000 few days after. Then I started investing in Canadian Shares and US shares. I can understand that if I am investing all of $40000 into shares immediately and sell that sometime after, it is easy to calculate the loss/gain. But if I have started with some money and the rest is staying in my account, I am still either having loss/gain on the currency itself that is sitting in my account as spare. If I buy the shares sometime after, then my exchange rate (or the cost base) will be different than when the amount was converted into CAD dollars. Now with many transactions that I go through within a year and at times I have got spare money in my account, it is not possible to keep track of when the spare money was there in my account and when and how much it was invested. My account statement also does not give me a clue on spare cash in my account and it tells me only my purchase and sale of shares. Also at many times I have used margin account. Simply calculating the gain/loss on shares by converting it in AUD on the date of transaction will not be complete as I lost or gained money that was in my account.
    Although I have prepared the gain/loss on my shares by converting them into AUD on the date of purchase and sale, I don't know how to take into account the movement in the forex on the spare cash that I had or overdue (margin) cash I had in my account.
    What I simply did in the past is: What was the total amount (in AUD) that I sent to US (i.e. 50,000AUD) minus what is the value of my portfolio as of 30th June 2010 (e.g. AUD 45,000). That will be my Capital Gain or Capital Loss. This is regardless of whether I have sold my Shares or not. I know this is not right, but last year when I went to a Tax Adviser, HE HAD NO CLUE WHAT TO DO. I was Sooooo Disappointed and he charged me $150. I wanted my tax return to be perfect so that I don't own even a single penny to the Tax Guys. But I am still in mess. I know I am not that off from my taxes, but can you please advice a solution. OR Can you please advice a GOOD TAX ADVISER in Melbourne whom you know have dealt with such cases. I will be really obliged. If you are not clear on my case, I am happy to explain it with example.

    Kind Regards

  2. Meggsy

    Meggsy Well-Known Member

    15th Feb, 2007
    Brisbane, QLD