Reporting Foreign Exchange Loss

Hi Everyone,

Hope you are all enjoying the “home stretch”!

I have a client who sold a US property in 2020 and I reported the capital gain using the exchange rate on the date of closing (well closing date was Nov. 11 which is a bank holiday in Canada so I used next business day). He was paid in US dollars into a US escrow account. When he had the cash transferred into his Canadian account through the brokerage (Knightsbridge), there was an exchange rate loss because the rate had decreased slightly from closing date to transfer date. Where do I report this loss? Would it go on Schedule 3, section 5 under bonds/debentures?

Thanks in advance for your help.

You appear to be looking for ITA S39(2)

Thank you for the reference. Do you have an English translation by chance? This is heavy reading for 3 days before the deadline.

section 4, 7 or 8

The sale of the property was reported in section 4 (Real estate, etc). Sections 7 and 8 are for PUP and LPP respectively. I don’t think currency falls into either of these categories.