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How does one calculate the gain on foreign stocks that one owns?

Say, $1 = GBP 2 (to convert from $ to GBP)
GBP 1 = $0.45 (to convert from GBP to $)


a) Convert $10 to GBP 20
b) Buy 1 share on LSE for GBP 20
c) I sell the share on LSE for GBP 30
d) I convert the GBP 30 to $13.5

At what point do I owe taxes? At point c) or d)? In other words, say GBP that I got in c), I do not convert and buy more shares on the LSE with the proceeds. Am I liable for taxes?

You are liable for taxes as soon as you sell the stock. There is no need to physically convert the GBP back to dollars. In order to determine the tax liability, you convert the purchase price to dollars at the purchase date exchange rate and the sales price to dollars at the sale date exchange rate. The difference (including commissions, of course) is your taxable gain or loss.

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