Do I have to pay taxes on a difference in currency exchange rate? Let’s say I bought euros and in a year from


Currency Exchange
Zabava asked:


now euros would go up vs. dollar; do I pay taxes on a difference in exchange rate?

This entry was posted on Sunday, November 1st, 2009 at 1:00 am and is filed under United States. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

2 Responses to “Do I have to pay taxes on a difference in currency exchange rate? Let’s say I bought euros and in a year from”

  1. StephenWeinstein Says:
    November 2nd, 2009 at 7:16 am

    My guess (I do not know) is:

    You do not pay tax every year that you hold an asset, but when you sell the Euros or exchange them for a third currency (or spend them), you pay capital gains tax at that time based on the difference between what you paid for them and what you get for them. StephenWeinstein

  2. Dr. Deth Says:
    November 4th, 2009 at 7:12 am

    any gain at the time you cash them in would be taxable - not sure if that would be considered capital gains or other type of income Dr. Deth

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