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Eugene
Participantedit: Zillow is NOT comprehensive.
ParticipantSay 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.
ParticipantSay 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.
ParticipantSay 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.
ParticipantSay 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.
ParticipantSay 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.
ParticipantDon’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%.
ParticipantDon’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%.
ParticipantDon’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%.
ParticipantDon’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%.
ParticipantDon’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%.
ParticipantIt’s possible that all the bail out talk gave people a spark of hope. This may have enticed them to make a payment in the hopes that the bail out would save them.
This would explain the decline in NODs, but not the decline in foreclosures. People who were supposed to be foreclosed upon in November are the ones that stopped paying for their homes sometime around March and were served a notice of default in July. Making a single payment does not save you from a foreclosure if you’re 6 months behind. Once you get a NOD, there are only three ways out. 1) Refinance 2) Sell 3) Foreclose. Foreclosures aren’t happening, sales are still slow, and third-party refinancing is probably very hard to find, given recent price declines. That leaves two options. Either lenders are engaged in mass modification of defaulting loans, or they are delaying foreclosures for whatever reason. One plausible explanation is that they are not foreclosing on any borrower attempting a short sale. Short sale leaves much more money in the lender’s pocket than REO.
ParticipantIt’s possible that all the bail out talk gave people a spark of hope. This may have enticed them to make a payment in the hopes that the bail out would save them.
This would explain the decline in NODs, but not the decline in foreclosures. People who were supposed to be foreclosed upon in November are the ones that stopped paying for their homes sometime around March and were served a notice of default in July. Making a single payment does not save you from a foreclosure if you’re 6 months behind. Once you get a NOD, there are only three ways out. 1) Refinance 2) Sell 3) Foreclose. Foreclosures aren’t happening, sales are still slow, and third-party refinancing is probably very hard to find, given recent price declines. That leaves two options. Either lenders are engaged in mass modification of defaulting loans, or they are delaying foreclosures for whatever reason. One plausible explanation is that they are not foreclosing on any borrower attempting a short sale. Short sale leaves much more money in the lender’s pocket than REO.
ParticipantIt’s possible that all the bail out talk gave people a spark of hope. This may have enticed them to make a payment in the hopes that the bail out would save them.
This would explain the decline in NODs, but not the decline in foreclosures. People who were supposed to be foreclosed upon in November are the ones that stopped paying for their homes sometime around March and were served a notice of default in July. Making a single payment does not save you from a foreclosure if you’re 6 months behind. Once you get a NOD, there are only three ways out. 1) Refinance 2) Sell 3) Foreclose. Foreclosures aren’t happening, sales are still slow, and third-party refinancing is probably very hard to find, given recent price declines. That leaves two options. Either lenders are engaged in mass modification of defaulting loans, or they are delaying foreclosures for whatever reason. One plausible explanation is that they are not foreclosing on any borrower attempting a short sale. Short sale leaves much more money in the lender’s pocket than REO.
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