To: Ed Ajootian who wrote (139829 ) 9/9/2010 1:30:18 AM From: Amark$p 1 Recommendation Read Replies (1) | Respond to Ed, I prepare a tax return for FLP partnership that used Fidelity for trading in C$ and US$ in November before I nixed it. Problem is Fidelity keeps track of both holdings, US$ and C$ stocks. When the stock is sold theoretically you have some capgain (or caploss) as well as a foreign exchange gain/loss on future 1099 reporting. The foreign exchange gain/loss theoretically should be taxed as ordinary income and not as capgain. You may want to check with Fidelity on how they plan to treat forex gain/loss. Also, there was a big issue when first started in Nov 2009 when CanRoy C$ dividends were paid in C$ and C$ taxes taken out which were all in C$ if security bought with C$. It was new then, and Fidelity would just report C$ dividend and C$ taxes without listing stock that paid the dividend. And many CanRoy stocks often pay the dividends on same day of month (e.g. the 15th), so could not determine what company was paying dividend, all you had was a C$ amount.
