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Exchange rate on disposal of foreign shares

JdS67

My understanding of the ACB for foreign stocks is that the exchange rate AT THE TIME OF PURCHASE is used to calculate the ACB, and the rate AT THE TIME OF SALE is used to calculate the disposal proceeds. The difference, is the capital gain in local currency. (CAD in my case)

However, on disposing a foreign stock today, the realised capital gain (loss) reported is significantly more than I expected, and on reviewing the Portfolio Value & Cost Basis report, I saw that this was because the cost basis was different from what I expected (and was incorrect). Looking at the the Security Report for the stock, I noticed that the exchange rate for ALL transactions (entered over the past several years) was taken as the latest rate entered, which is clearly should not be.

What could be the problem here, and what options can I try to fix this?

I have already used the Validate, Rebuild and Repair options. The only one I've not yet tried is the Delete & Rebuild option

Running Quicken for Windows Classic Deluxe Version R62.18 Build 27.1.62.18

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Comments

Quicken Jasmine

Hello @JdS67,

Thanks for reaching out!

A few quick questions to help narrow this down: When you originally entered the foreign stock transactions, did you manually input exchange rates, or let Quicken apply the default? Are you seeing this rate issue only in reports, or also in the transaction register itself? And have you recently edited any past transactions, which might have triggered a rate recalculation?

Let me know!

JdS67

The exchange rates were entered manually. I may have edited some past transactions, I have checked all to verify that the exchange rate remains what I entered manually. As the transaction register is only displayed in the foreign currency, the issue does not arise there. However, I notice that the Security Report has the option to customize and use the transaction exchange rate. When I use that, the Security report gives me the correct capital gain, but both the capital gains report and the income/expense report by category seem to use the current exchange rate and therefore report an incorrect capital gain. I cannot find a similar customization option in those reports to instruct them to use the transaction exchange rate.

Quicken Jasmine

Hello @JdS67,

Thanks for providing more information!

In Quicken for Windows, the Capital Gains and Income/Expense by Category reports currently do not offer an option to apply transaction-specific exchange rates. These reports default to using the most recent exchange rate from the Currency List, which can result in discrepancies when calculating gains or losses on foreign securities.

To ensure accurate reporting for capital gains involving foreign securities, it's advisable to use the Security Report. This report can be customized to apply the exchange rate entered at the time of each transaction, providing a more accurate reflection of gains or losses in your home currency.

I suggest that you create an idea post. This way, other users who have the same or a similar request can vote on your idea. Our Development and Product teams frequently use our idea posts to improve Quicken and implement new features requested by customers.

Thank you!

Quicken Jasmine

https://community.quicken.com/discussion/comment/20493162#Comment_20493162

Just checking in! Were you able to create an idea post?

Let me know!

Quicken Jasmine

https://community.quicken.com/discussion/7962947/exchange-rate-on-disposal-of-foreign-shares

Just checking in once more before this thread is closed due to no activity!