Foreign exchange gains and losses

Foreign exchange gains or losses from capital transactions in foreign currencies are considered to be capital gains or losses.

However, you only have to report the amount of your net gain or loss for the year that is more than $200. If the net amount is $200 or less:

• there is no capital gain or loss; and
• you do not have to report it on your income tax and benefit return.

Report your net gain or loss in Canadian dollars. Use the exchange rate that was in effect on the day of the transaction or, if there were transactions at various times throughout the year, you can use the average annual exchange rate.

Completing your Schedule 3

Report dispositions at lines 151 and 153 of Schedule 3.

Forms and publications

• Schedule 3, Capital gains (or losses)
• IT95R Foreign exchange gains and losses
• IT346R Commodity futures and certain commodities