Question
Tax question regarding possible gain on exchange
Hi there,
I'm filing a final trust return for a deceased taxpayer who has a USD investment account that currently holds only cash. The wealth management firm shows a book value and a market value on this account, which as far as I can tell reflects the difference between the CAD value of the securities that were sold (before the current fiscal period), and the CAD value of the US dollars currently sitting in the account.
- Since this is supposed to be a final return, should there be a deemed disposition here, and a gain on exchange reported?
- If so, Would that be a capital gain, or income?
- And since we can't disburse until the return has been assessed and the clearance certificate issued, what happens if there's a gain or loss in value in the meantime? Where would that be reported?
