Currency Effect on Investment Returns
Calculate how currency fluctuations impact your foreign investment returns. See the difference between nominal returns in foreign currency and actual returns in CAD after accounting for exchange rate movements.
ACB Currency Effect Calculator
See how currency fluctuations impact your investment returns
Currency Effect on Returns: When Canadians invest in foreign assets, currency movements can amplify or reduce returns. A 30% gain in USD might be 40% in CAD if the USD strengthened against CAD, or only 20% if it weakened.
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Data Source & Tax Guidance:
- Exchange Rates: Bank of Canada Valet API
https://www.bankofcanada.ca/valet/ - T1135 Reporting: Foreign Income Verification Statement
https://www.canada.ca/en/revenue-agency/.../t1135.html
Questions and Answers about Form T1135 - Foreign Currency Conversion: Income Tax Folio S5-F4-C1
CRA Income Tax Folio S5-F4-C1 - ACB & Capital Gains: Adjusted Cost Base Guide
https://www.canada.ca/en/revenue-agency/.../t4037.html
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