I thought I remember reading something about this before, but can't remember clearly.
The following scenarios are for a Japanese resident who has resided in Japan for more than 5 years.
If someone remits JPY to a USD bank account in the US on let's say June 20, 2024 and then using some of that money to buy ETFs in a US brokerage account on let's say June 24, 2024, which day's exchange rate would be used for Japanese tax reporting? Would you calculate the purchase cost in yen using the exchange rate that you transferred money (June 20) or the day you made the purchase (June 24)?
On the flipside, if someone were to sell securities in said US brokerage on let's say on Aug 20, and then transfer USD to a JPY bank account in Japan on Aug 24, which date would be used to calculate the securities' cost in JPY for tax reporting purposes, the date you sold the security (Aug 20) or the date you remitted it to Japan (Aug 24)?
I suppose the tldr question would be, "For Japanese tax reporting purposes, when purchasing or selling US securities in USD from a US bank account, is the value of said securities in JPY calculated using the exchange rate for the day of remittance of JPY to USD or the exchange rate for the day when the purchase/sale of the securities was made?"
Additionally, if the answer to the above question is "the exchange rate on the day of remittance" how would this effect someone who held US dollars before coming to Japan or earned US dollars deposited into a US bank account (probably based on date of deposit?) since there was no date of remittance of JPY to USD?
by Sankyu39Every1