Hello,
I am trying to figure out how this particular situation works with regards to tax.
Say you have a brokerage account and you hold US shares. You also decide to keep any USD dividends in dollars, not converting them back to euro.
Now to calculate income tax on the dividends I assume you use the EUR/USD exchange rate on the day you received it.
But say I continue to hold the dollars for multiple years in the brokerage account and the dollar rises in value relative to euro. Would there be a capital gains on these dollars when exchanged for euros, even though you have paid income tax on them at an earlier date?
If so how would you calculate your gain?
Thanks,
Darren
I am trying to figure out how this particular situation works with regards to tax.
Say you have a brokerage account and you hold US shares. You also decide to keep any USD dividends in dollars, not converting them back to euro.
Now to calculate income tax on the dividends I assume you use the EUR/USD exchange rate on the day you received it.
But say I continue to hold the dollars for multiple years in the brokerage account and the dollar rises in value relative to euro. Would there be a capital gains on these dollars when exchanged for euros, even though you have paid income tax on them at an earlier date?
If so how would you calculate your gain?
Thanks,
Darren