For the US I've read elsewhere that there's little to no tax on individuals making currency exchanges (except maybe for when leaving a country there can be an "Exit Tax" the US imposes). But that currency trading can incur taxes, either capital gains or at normal income tax rates.
What I'm uncertain about: exchanges done with, say, the Interactive Brokers currency conversion mechanism. It clearly is differentiated in their sys. as the "Convert Currency" tool (vs. Forex trade, which is a different menu option). But by default the IB currency converter still transacts with a market order.
So, for tax purposes, is this still technically just an currency exchange??
I thought it was, and I haven't seen anything in my year-end generated tax forms that IB supplies to suggest tax concerns otherwise.
Lastly--and here's where I could really use some help w/ creative ideas--after spending over a year residing in the EU, my Euros accumulated to a modest amount (but for me not insignificant). Valued around 12K, in USD. A property search by my spouse and I has been unexpectedly prolonged.
So I was thinking of best means for some short-term goals of what to do w/ these euro funds rather than have them just sitting several more months or even another year, burning fumes of inflation. Ideally, I'd like to get the funds over to my Vanguard high-interest CMA or to the VUSXX, so to add a little extra there to my liquid funds but still have the money working, doing *something*.
But 1. I don't know if that's a "waste" w/ going back & forth w/ currency conversions (esp. if w/in roughly a year I possibly convert again, such as to make a down payment).
Also, 2. I don't know if there are addl. tax implications for converting back (i.e. having already gone USD > EU, and now back to USD to move to Vanguard acct.
Any ideas??
Thank you!
What I'm uncertain about: exchanges done with, say, the Interactive Brokers currency conversion mechanism. It clearly is differentiated in their sys. as the "Convert Currency" tool (vs. Forex trade, which is a different menu option). But by default the IB currency converter still transacts with a market order.
So, for tax purposes, is this still technically just an currency exchange??
I thought it was, and I haven't seen anything in my year-end generated tax forms that IB supplies to suggest tax concerns otherwise.
Lastly--and here's where I could really use some help w/ creative ideas--after spending over a year residing in the EU, my Euros accumulated to a modest amount (but for me not insignificant). Valued around 12K, in USD. A property search by my spouse and I has been unexpectedly prolonged.
So I was thinking of best means for some short-term goals of what to do w/ these euro funds rather than have them just sitting several more months or even another year, burning fumes of inflation. Ideally, I'd like to get the funds over to my Vanguard high-interest CMA or to the VUSXX, so to add a little extra there to my liquid funds but still have the money working, doing *something*.
But 1. I don't know if that's a "waste" w/ going back & forth w/ currency conversions (esp. if w/in roughly a year I possibly convert again, such as to make a down payment).
Also, 2. I don't know if there are addl. tax implications for converting back (i.e. having already gone USD > EU, and now back to USD to move to Vanguard acct.
Any ideas??
Thank you!
Statistics: Posted by Maris61 — Thu Jul 04, 2024 6:50 pm — Replies 0 — Views 106