It’s time to consider your tax and I have calculated my capital gains. Tricky thing in my case is an exchange rate. Yen’s appreciation favors me because my capital gain/loss of trading US stocks needs to be converted in JPY. On the other hand,Yen’s depreciation really hurts me.
In 2015, thus far I have made a capital gain of $376, but the same gain is JPY 1,341,637 in Yen. I have never converted currency between $ and JPY to conduct those trades, but on paper my capital gain is JPY 1,341,637 which is $11,114 if I convert it into US$ with today’s exchange rate. I made only $376, but I have to pay at least $11,email@example.com% = $2,291 as a capital gain tax! This is mainly because of RAI’s acquisition of LO. I bought LO shares when JPY was very high against US$ (JPY 80.98 and JPY 94.58)and RAI’s LO acquisition happened on June 12 this year when JPY was 122.96 for 1 US$. Capital gain on paper from that transaction alone is JPY 1,099,093. I was a very happy shareholder of LO’s. I enjoyed more than 6% of YOC. Then, suddenly this taxable transaction happened.
I think that I was very unfortunate and I don’t know how to deal with this big tax bill that I have to pay next March. A sad thing often occurs in your life. This is one of the that kind of events.
Disclosure: Long RAI