Capital gains on Forex

[guimauve]

Hello,

Here's a tax problem that I cannot answer and
gets me crazy.
Thank you to those who know to give me a help
For simplicity, I rounded the numbers.


I have an account in U.S. dollars (USD) with a Forex broker in
United States and have made transactions on the pair CAD / USD
which is quoted in USD.

In 2008, I made the following transactions:
SELL 10,000 CAD / USD at 1.00 or USD 10,000
BUY 10,000 CAD / USD at 0.90 or USD 9,000

My account shows a gain of USD 1,000

What should I declare for taxes ?
1 - Nothing, as I bought and sold 10,000 Canadian dollars
so there is no capital gain in canadian dollars.
2 - My gain of 1,000 USD. But in this case which rate do I take to convert the
USD in CAD, 1.00 or 0.90 ?
?
3 - Other

Thank you very much for your help!

PS : I am a canadian resident

 

[guimauve]

Nobody knows the answer ?

 

[Masquerade]

Step 1: Make profit
Step 2: Worry about taxes.

 

[Tarhini_Trade]

where is your broker located?

 

[donaldduke]

At some point you convert all your non candadian dollars back to canadian dollars. Use the exchange rate you got at that point.

If you have a non cad positions at the end of the tax year that you have forgotten to convert back then you probably would use the exchange rate on the last tax day of the year to calculate what your profit is in cad for those.

This is how i think it should work based on common sense. However actual accounting rules might be different.