Thanks @Irene2805 , much appreciated!
One follow-up question. As you see from the screenshot I originally attached, the fine print of the Fidelity document states:
"USD Cost Basis - The USD cost basis of the foreign currency disposed of is determined based upon the earlier transaction in which you acquired it. ... For tax reporting purposes, you may be required to determine your actual USD cost basis based on the exchange rate on the settlement date of the applicable transaction.
USD Proceeds - If, using a foreign currency, you purchased a security or another foreign currency, we calculated the USD proceeds by converting the disposed currency into USD at the end-of-day exchange rate on the trade date of the exchange. ... For tax reporting purposes, you may be required to determine your actual USD proceeds based on the exchange rate on the settlement dates of the applicable transactions."
How do I know if I can use the USD cost basis and proceeds that Fidelity calculated and printed on my statement or if I have to recalculate the USD cost basis and/or proceeds based on the exchange rate on the day the trade settled, as the fine print suggests I may need to do? For what it's worth, the relevant dates are as follows:
- I deposited euros into my Fidelity account on 12/31/19 and 1/2/20.
- I bought a security that is traded in euros using the previously deposited funds on 1/3/20.
- The transaction was settled on 1/7/20.
Appreciate any insights you can share!
