I’m using CommSec and it’s US connection, Pershing as my broker.
I 'm uploading to ShareSight via a csv file created from a download of all my NASDAQ transactions from Pershing.
So that all Reports calculate correctly, what values should I be putting in the Exchange Rate column in the Sharesight upload csv file for each trade, especially where no money is being transferred to/from Australia?
To explain further, I know what my exchange rate was for the initial transfer of funds from AUS to USA. I’ve added that exch rate to the csv upload file in the Exchange Rate column, on the row for the first BUY of XYZ shares. (XYZ is not the real name.)
Subsequently, I’ve sold and re-bought XYZ shares but without transferring additional funds from AUS to USA. I.e. just kept the proceeds in my Pershing broker account and then bought new shares from those funds.
Since these trades do not involve any exchange rate, I assumed I’d enter into the upload csv an Exchange Rate of 1 for each trade (other than the first trade).
But when I do this, the Reports for Sold Securities and Capital Gains Tax do not come out correctly.
What value, if any, should I be putting in the Exchange Rate field for each of these subsequent BUY or Sell transactions?
Whether or not you transferred cash to your Australian account from the US account there has still been a capital gain or loss on the transaction. As you transact with the Australian Tax Office in Australian dollars there must also be an exchange rate and of course the exchange rate changes all the time. Because you have not actually done a transfer into AUD I would use the Exchange rate on the day you transferred the shares which is what Sharesight uses and also use this for your tax return. Ultimately, for your performance reports, you have to add everything up which means it must be in the same currency because you cannot add apples and oranges as a single entity.
Thanks G.
That clarifies a few things and “Yes” I’m aware that ultimately I need to convert back to AUD via exchange rates and that Sharesight automatically adds an exchange rate for the day when I SELL some shares.
But where is Sharesight pulling each exchange rate value from? The rates it is automatically adding differ significantly from the published RBA AUD-USD rates for the day and also from the Exchange Rate calculator for the day on Foreign exchange rates - CommBank.
I am not sure where Sharesight picks up the FX data, they must get a data feed from somewhere. With my US shares I use NAB Trade and when the contract is emailed into Sharesight it comes with the AUD equivalent so this is used and I do not need enter anything. But not sure this is the case with CommSec. If the money stays in the US dollar account I do not think it that important the exchange rate you use as long as it is consistent and realistically based so I would use the Sharesight one . The ATO should accept that. As far as calculating your returns, Sharesight gives you the FX gain or loss.
Thanks for your response.
I’m checking that approach (auto fill Exchange Rate field via Sharesight) with my accountant but it sounds logical. I.e. even though the exchange rates are slightly different to the RBS rates or actual AUD-USD rates I’m getting when I transfer money to my USA broker, I imagine it will all even itself out (i.e. same overall % exchange loss/gain will apply) if I use just one source to fill Exchange Rate field. So I imagine my accountant will advise just using the Sharesight exchange rate autofill values for all USA share trade buys and sells.
Yes that sounds the right approach. I would be interested to see what your accountant advises if you post that as I have some shares in a similar position and always better to listen to someone who knows what they are talking about:).