How to use of FX Income Worksheet from Interactive Brokers to file Canada individual tax return
I have been an Interactive Brokers (IB) client for more than a decade, but it was never clear to me how I should use FX Income Worksheet they issue for tax return in Canada. IB doesn't have an official guide on it. If you seach online, you will find all kind of discussions, but there isn't a firm conclusion that people can reach. Recently I did some research and finally figured out what is involved and what should be done when filing the tax return. The short answer is that you should complement T5008 with the FX Income Worksheet to file your tax return. IB has this webpage: https://www.interactivebrokers.com/en/support/tax-fxpl.php , but the example on that page is complex and not a lot of people can understand it. That's why I want to use a simple example to illustrate the same idea. The Scenario I start with CA$130 in my IB account in 2024. Here’s my four-day journey: Day 1 : Convert CA$130 to US$100 at 1.3 (US$1 = CA$1.30). Day 2 : Buy 1 U.S. stock share for US$100 at ...