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Need help entering a US Transaction.
Bought out a lease on a 2015 pickup truck: I entered a capital cost of $35,603.36, based on original purchase price of $32,834.83 + $1,641.74 GST + $2,626.79 PST - $1,500 Max GST claimable = $35,603.36. Sold to a US buyer for $41,500 CDN. Rec'd a chq from US purchaser for $32,536.00. $42,170.70 went into their CDN bank account.
Does the difference go to Gain on Disposal; or to a Gain on Foreign Exchange account? Or a split between the two?
Good morning Cheryl!
The difference in the deposit will not go to any sort of gain or loss account. Instead, the actual sale itself needs to be grossed up to the Canadian dollar equivalent as listed on your CDN bank statement. You only claim a gain or loss on foreign exchange if you have an account in a foreign value that is re-valued to Canadian dollars periodically.
So, you will enter your deposit for $42,170.70. This will also be what is on your C- line as it is the Canadian dollar equivalent.
Let me know if you have further questions!