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tiberieus
Level 1
posted
‎August 21, 2019 04:53 PM
last updated ‎August 21, 2019 1:53 PM

Home currency adjustments leading to taxable realized foreign bank account gains?

I have Canadian dollars as my home currency. I did a home currency adjustment (HCA) to bring the (Canadian) balance for my USD foreign bank account on the Balance Sheet into line with the ACTUAL balance in my USD foreign bank account, using the exchange rate on the date I did the HCA.

As a result, Quickbooks posted a HUGE amount of INCOME from foreign exchange to my P&L report. 

Why would this happen since I already applied the appropriate exchange rate of every transaction at the time of the transaction, and reported the exchange gain or loss already?

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1 Comment 1
LauraAB
QuickBooks Team
QuickBooks Team
‎August 21, 2019 05:40 PM

Home currency adjustments leading to taxable realized foreign bank account gains?

Hello tiberieus,

 

Thanks for reaching out to us here in the QuickBooks Desktop community. I'll do my best to help explain what's going on here.

 

Currency exchange rates are pretty dynamic and can change considerably even over of a short period of time. This is something that needs to be taken into consideration when it comes to currency adjustments and other multicurrency processing. Knowing more about the transactions themselves, their dates, and the finer details of the changes made will better help us determine what's going on in your numbers.

 

For that reason, I'd like you to give the phone support team a call. An agent can do a screen share session to take a closer look at your figures and the steps you've taken. The number to dial is 1-877-772-9158 with Pro and Premier support available 24/7 and Enterprise and ProAdvisor support on hand from Monday to Friday between 9 a.m. and 8 p.m. EST. Learn more about support here: Intuit QuickBooks Desktop software support policies

 

Have a great evening!

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