Perhaps I leaped to an assumption about something I wasn't in a position to
test here. If the Investment Cash Account is in a non-default currency and
the investment is made from the Investment cash account, I could see where
this would probably be an issue.

If the Investment is made from a cash account in the default currency, then,
well, test it to find out...

"Cal Learner-- MVP" <via_newsgroup[at]please.tnx> wrote in message
news:auaa13pl9fltein6ba3ce9ei22v9k5au4c[at]4ax.com...
- quote -

In microsoft.public.money, Dick Watson wrote:

- quote -

If I remember previous discussions correctly, Money records the
purchase price in the "Account currency". As exchange rates change,
the basis value in a different currency would follow the exchange
rate. That would cause a problem in filling out capital gains taxes
if the account currency was not the same as the taxing body
currency.

Boy did it mangle the Euro...

"Dick Watson" <littlegreengecko[at]mind-enufalready-spring.com> wrote in
message news:em4vVM6dHHA.2332[at]TK2MSFTNGP04.phx.gbl...
- quote -

I hasten to add that I don't *know* how Money treats it. I'm extrapolating
from how I think it stores currency conversion transactions to how I suspect
it works with that data in this case.

If you need to know for sure, I'd setup a test case in a test file and look
to see what it does.

"Christian" <Christian[at]discussions.microsoft.com> wrote in message
news:0706643B-427D-4198-9E7F-7E7E73A6C3A3[at]microsoft.com...
- quote -

Are we talking about what Money does or how the tax laws work?

I'm betting the answer to the latter is that your basis is set in stone at
the original--then current--exchange rate.

As to the former, my suspicion is the same--the conversion implicit in that
transaction is the one that will be used for cost basis and any future
comparison to the cost basis will also implicitly convert the share back to
the default currency using a current exchange rate. Thus, 1,000 shares of
some Euro denominated invest bought for $10,000 at, say, a 0.90 $ to ?
conversion (a $10,000 buy of 1,000 ?9 shares) will show a $2,082 gain if the
same shares are still worth ?9 but the ? that sold for $1.11 when you bought
it now buys $1.34 (a 0.7449 $ to ? conversion or a 1.342 ? to $ conversion)
when you sell it. (Hopefully I got the example right. This stuff messes with
my mind.)

"Christian" <Christian[at]discussions.microsoft.com> wrote in message
news:0706643B-427D-4198-9E7F-7E7E73A6C3A3[at]microsoft.com...
- quote -

Does Money keep track of the cost basis for investments in foreign currence
in the base currency or in the investment currency? The reason I ask is
because I have investments where the cost basis amount in foreign currency
is different from the buy amount in foreign currency. I would have expected
the cost basis to stay fixed in the investment currency but it could be that
it changes with the exchang rate towards the base currency. Does someone know
about this?

Thanks.