What’s the practice for evaluating the cost base for assets when moving internationally? Specifically, when the asset is in a currency different from the currency of the previous tax residence and different from JPY.
For example:
Let’s say a HK resident trading on the US stock market.
* Purchase 1: 100 @ 100 HKD
* Purchase 2: 100 @ 120 HKD
* Cost averaging: 200 @ 110 HKD
* Sale: 100 @ 140 HKD
* Tax paid on profit of: 3000 HKD
* Remaining value:
110 @ 110 HKD, in the currency of the asset 110 @ 11 USD
Moving to Japan on: 1 Jan 2022
* Buying the same asset: 100 @ 2000 YEN on 1 March 2023
* Selling: 100 @ 2200 YEN on 1 May 2023
What would be the cost base to calculate the profit?
The exchange rate at which date should be used?
by amesco