Economics and Investing

[Eugene]

Don’t forget SCC.

Financials stocks have taken a lot of beating already and SRS is only indirectly connected to the market (as far as I understand, it is essentially the inverse of prices of commercial real estate in the United States). SCC is the one that’s really poised to take a beating if there is a consumer spending led recession. IMHO it’s the most underpriced of three. Year to date it’s only up 20%. SKF is up 35% and SRS is up 50%.

[hipmatt]

This leads me to a question of taxes and currencies….

Say an investor bought Canadian dollars for .65 on the dollar a while back, and recently converted them back to USD at 1.05, making himself a decent profit..

Does he need to pay taxes on that?
Is this considered an investment?

[hipmatt]

This leads me to a question of taxes and currencies….

Say an investor bought Canadian dollars for .65 on the dollar a while back, and recently converted them back to USD at 1.05, making himself a decent profit..

Does he need to pay taxes on that?
Is this considered an investment?

[hipmatt]

This leads me to a question of taxes and currencies….

Say an investor bought Canadian dollars for .65 on the dollar a while back, and recently converted them back to USD at 1.05, making himself a decent profit..

Does he need to pay taxes on that?
Is this considered an investment?

[hipmatt]

This leads me to a question of taxes and currencies….

Say an investor bought Canadian dollars for .65 on the dollar a while back, and recently converted them back to USD at 1.05, making himself a decent profit..

Does he need to pay taxes on that?
Is this considered an investment?

[hipmatt]

This leads me to a question of taxes and currencies….

Say an investor bought Canadian dollars for .65 on the dollar a while back, and recently converted them back to USD at 1.05, making himself a decent profit..

Does he need to pay taxes on that?
Is this considered an investment?

[Nonbeliever]

I am going to agree with p-dude. When you are up 10-15% get out. You may see it raise higher, but be safe. Think long term. There are a lot of short term swings. No comment (hence no analysis on the Canadian dollar) on p-dude’s sentiment on the loonie. Conserve capital. Be safe.

[Nonbeliever]

I am going to agree with p-dude. When you are up 10-15% get out. You may see it raise higher, but be safe. Think long term. There are a lot of short term swings. No comment (hence no analysis on the Canadian dollar) on p-dude’s sentiment on the loonie. Conserve capital. Be safe.

[Nonbeliever]

I am going to agree with p-dude. When you are up 10-15% get out. You may see it raise higher, but be safe. Think long term. There are a lot of short term swings. No comment (hence no analysis on the Canadian dollar) on p-dude’s sentiment on the loonie. Conserve capital. Be safe.

[Nonbeliever]

I am going to agree with p-dude. When you are up 10-15% get out. You may see it raise higher, but be safe. Think long term. There are a lot of short term swings. No comment (hence no analysis on the Canadian dollar) on p-dude’s sentiment on the loonie. Conserve capital. Be safe.

[Nonbeliever]

I am going to agree with p-dude. When you are up 10-15% get out. You may see it raise higher, but be safe. Think long term. There are a lot of short term swings. No comment (hence no analysis on the Canadian dollar) on p-dude’s sentiment on the loonie. Conserve capital. Be safe.

[Eugene]

Say an investor bought Canadian dollars for .65 on the dollar a while back, and recently converted them back to USD at 1.05, making himself a decent profit..

It’s fairly complicated.

My understanding is, if you do the buying and selling yourself (as an individual), 0.50 constitute capital gains and you have to pay taxes on them, either as short-term or as long-term, depending on how long you held Canadian dollars. In addition, you don’t have to pay tax if your gains from this transaction are less than $200. Finally, if you have a lot of short-term gains, under some circumstances you may elect to have your proceeds taxed under section 1256 (60% long-term / 40% short-term).

If you don’t buy and sell Canadian dollars yourself but rather hold them indirectly via a foreign currency ETF (FXC), consult the prospectus of your ETF. You may have to pay taxes because of transactions made by its managers “behind your back”, even if you don’t sell the ETF.

I am not a paid tax professional and this does not constitute professional advice.

[Eugene]

Say an investor bought Canadian dollars for .65 on the dollar a while back, and recently converted them back to USD at 1.05, making himself a decent profit..

It’s fairly complicated.

My understanding is, if you do the buying and selling yourself (as an individual), 0.50 constitute capital gains and you have to pay taxes on them, either as short-term or as long-term, depending on how long you held Canadian dollars. In addition, you don’t have to pay tax if your gains from this transaction are less than $200. Finally, if you have a lot of short-term gains, under some circumstances you may elect to have your proceeds taxed under section 1256 (60% long-term / 40% short-term).

If you don’t buy and sell Canadian dollars yourself but rather hold them indirectly via a foreign currency ETF (FXC), consult the prospectus of your ETF. You may have to pay taxes because of transactions made by its managers “behind your back”, even if you don’t sell the ETF.

I am not a paid tax professional and this does not constitute professional advice.

[Eugene]

Say an investor bought Canadian dollars for .65 on the dollar a while back, and recently converted them back to USD at 1.05, making himself a decent profit..

It’s fairly complicated.

My understanding is, if you do the buying and selling yourself (as an individual), 0.50 constitute capital gains and you have to pay taxes on them, either as short-term or as long-term, depending on how long you held Canadian dollars. In addition, you don’t have to pay tax if your gains from this transaction are less than $200. Finally, if you have a lot of short-term gains, under some circumstances you may elect to have your proceeds taxed under section 1256 (60% long-term / 40% short-term).

If you don’t buy and sell Canadian dollars yourself but rather hold them indirectly via a foreign currency ETF (FXC), consult the prospectus of your ETF. You may have to pay taxes because of transactions made by its managers “behind your back”, even if you don’t sell the ETF.

I am not a paid tax professional and this does not constitute professional advice.

[Eugene]

Say an investor bought Canadian dollars for .65 on the dollar a while back, and recently converted them back to USD at 1.05, making himself a decent profit..

It’s fairly complicated.

My understanding is, if you do the buying and selling yourself (as an individual), 0.50 constitute capital gains and you have to pay taxes on them, either as short-term or as long-term, depending on how long you held Canadian dollars. In addition, you don’t have to pay tax if your gains from this transaction are less than $200. Finally, if you have a lot of short-term gains, under some circumstances you may elect to have your proceeds taxed under section 1256 (60% long-term / 40% short-term).

If you don’t buy and sell Canadian dollars yourself but rather hold them indirectly via a foreign currency ETF (FXC), consult the prospectus of your ETF. You may have to pay taxes because of transactions made by its managers “behind your back”, even if you don’t sell the ETF.

I am not a paid tax professional and this does not constitute professional advice.

[Author]

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