Thank you. Your answer clarifies what exchange rate to use. I would be appreciative of knowing how the transaction is reported: 1) Covert purchase price to $, convert sales price to $, calculate sales proceeds and cost to enter into Turbo Tax. 2) Calculate sales proceeds and cost in foreign currency and then translate to $ at the exchange rate of the date of sale only. I think option 1) is correct, but I want to know what IRS requires. Using 1) I get a way lower gain because there was an FX loss. Using 2) I get a higher gain, but it only takes into account the FX on the date of sale.
Which is the correct approach?
Much appreciated.
