Calculating business expenses (when I paid in US dollars) question

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Apr 6th, 2020 9:05 pm

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Apr 5th, 2020 8:08 pm

TaylorParker21 [OP]: Newbie; Nov 19, 2019; 4 posts; 1 upvote

Apr 5th, 2020 8:08 pm

Calculating business expenses (when I paid in US dollars) question

Trying to figure out how to calculate expenses for purchases made in US dollars.

I have the actual amount I paid for the item on my credit card statement (credit card company converted the US purchase to Canadian dollars and charged my card). Is this the number I should use?

Or do I use the actual US dollar amount and multiply that by the CAN/US average exchange rate and use this number? Some receipts I have only show what was paid in US dollars.

Any help would be appreciated!

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Apr 6th, 2020 7:07 am

silky28: Deal Addict; Jan 17, 2012; 4746 posts; 186 upvotes; Toronto

Apr 6th, 2020 7:07 am

TaylorParker21 wrote: ↑ Trying to figure out how to calculate expenses for purchases made in US dollars.

I have the actual amount I paid for the item on my credit card statement (credit card company converted the US purchase to Canadian dollars and charged my card). Is this the number I should use?

Or do I use the actual US dollar amount and multiply that by the CAN/US average exchange rate and use this number? Some receipts I have only show what was paid in US dollars.

Any help would be appreciated!

For me, if my credit card states what, exactly, I paid in US dollars, or whatever other currency I am using, I use that number. If I do not have that I look up the historical exchange rate for the date of purchase.

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Apr 6th, 2020 8:03 am

angryaudifanatic: Deal Addict; Nov 10, 2018; 3968 posts; 4149 upvotes

Apr 6th, 2020 8:03 am

TaylorParker21 wrote: ↑ Trying to figure out how to calculate expenses for purchases made in US dollars.

I have the actual amount I paid for the item on my credit card statement (credit card company converted the US purchase to Canadian dollars and charged my card). Is this the number I should use?

Or do I use the actual US dollar amount and multiply that by the CAN/US average exchange rate and use this number? Some receipts I have only show what was paid in US dollars.

Any help would be appreciated!

Either work in the eyes of the CRA.

For legal topics and discussions, the opinion, guidance, and thoughts provided are my own and are not considered to be legal advice, in any manner.

Apr 6th, 2020 9:05 pm

Conquistador: Deal Fanatic; Feb 19, 2010; 6237 posts; 2968 upvotes

Apr 6th, 2020 9:05 pm

TaylorParker21 wrote: ↑ Trying to figure out how to calculate expenses for purchases made in US dollars.

I have the actual amount I paid for the item on my credit card statement (credit card company converted the US purchase to Canadian dollars and charged my card). Is this the number I should use?

Or do I use the actual US dollar amount and multiply that by the CAN/US average exchange rate and use this number? Some receipts I have only show what was paid in US dollars.

Any help would be appreciated!

It makes little sense to use anything other than the converted amount per the credit card statement. Hard to argue what your Canadian dollar expenses are when it's right there in black and white particularly when you've likely paid an FX fee on the conversion.

To use BOC exchange rates means that you're quite likely under-stating your expenses.

Don't over think it.

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