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-   -   Is the difference between currency exchange rates taxable (https://www.askmehelpdesk.com/showthread.php?t=470363)

  • May 12, 2010, 09:02 AM
    yianni2010
    Is the difference between currency exchange rates taxable
    If I have 20,000 euros in a bank abroad in Europe and the exchange rate
    Is $1.40/ Euro the money that I will transfer here to the States will
    Be equivalent to $28,000. Is the 8,000 difference between currencies considered
    An income based on the increase and therefore a tax liability ?

    Yian2010
  • May 12, 2010, 09:33 AM
    excon

    Hello y:

    You'll have more dollars than you had euros, but you won't have made any INCOME. Therefore, there'll be no income tax due.

    However, if you bought euros cheaper than you're selling them for, there MIGHT be a capital gains tax.

    excon
  • May 12, 2010, 05:38 PM
    The Texas Tax Expert

    Well, Excon is partly right. There will be a currency gain if you bought them for less than the current exchange rate but it will be ordinary income.
  • May 12, 2010, 10:41 PM
    MukatA
    No it is not income.
    If you buy or sell currency, you have taxable income or loss.

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