How is currency conversion for buying stock on a foreign exchange handled on an individual's tax return?

I purchased stock on the Canadian exchange by converting U.S. $ to Canadian $. Then I sold the stock on the Canadian exchange and converted the Canadian $ back to U.S. $. I have commissions associated with the exchange as well as a loss from the change in the exchange rate. How do I handle these two items? Do I just adjust the cost basis of the security when reporting gains/losses for Schedule D?How is currency conversion for buying stock on a foreign exchange handled on an individual's tax return?You use the USD equivalent on the day you bought the stock.

You use the USD equivalent on the day you sold the stock.



Plug these numbers into schedule D to determine your gain or loss.