Thanks for the feedback. Yes, it would be preferred if I could just do
something like:
2026-04-01 * "Buy 100 IMBL with EUR"
Assets:EU:Checking -1000 EUR
Assets:IBKR:BVME:IMBL 100 IMBL {"20260401"} @@ 1000 EUR
However this then creates a balance sheet that looks like:
beanquery> SELECT account, sum(position) WHERE date <= 2026-04-01 AND
account ~ 'Asset' GROUP BY account
Assets:EU:Checking 500 EUR { 1.20 USD} 500 EUR { 1.15 USD} -1000
EUR
I'm not sure if that's a problem per-se. I suppose a follow-on parsing
script could handle this. Since the disposal occurred in euro, there's no
precise exchange rate, I can just use whatever tax authority exchange rate
is needed.
On the actual currency conversions, I do need to specify the precise
exchange rate because the price I get from the bank/brokerage at the
instant of the conversion may be different from the daily published spot
rate. I suppose I could not use lots and instead do something like:
2026-02-01 * "Buy EUR"
Assets:EU:Checking 500 EUR @@ 600.0 USD
Assets:US:Checking -600 USD
This would make the balance sheet query cleaner, but would require a
parsing script to find all the EUR/USD currency conversions and calculate
the section 988 gains automatically.
I'm curious if anyone is actually doing something like this in practice.
On Thursday, March 12, 2026 at 6:51:45 AM UTC-7 Chary Ev2geny wrote:
> Hi, there!
>
> disclaimer: I am not an accountant and I just learned about the Section
> 988 gains after I have read your post. But I thought that this may be
> related to the sing_curr_conv
> <https://github.com/Ev2geny/evbeantools/blob/main/docs/sing_curr_conv.md>which
>
> I created.
>
> As far as I see, what you recorded makes sense. But I am just thinking
> that the issue here is that you try to combine a simple transaction record
> as well as post transaction tax analytics in one place.
>
> In a real world (personal or corporate) this would not be in one place. In
> a corporate world some corporation would just go around doing business in a
> local currency and then some specially trained person would then do some
> clever analytics to calculate the exchange -rate fluctuation - related
> gains in a functional currency. And this analytics would also depend on
> the on the source of exchange rate the person uses (so a bit subjective
> thing)
>
> I think the best way to use beancount is to do the same: you just record
> transactions they way you did them, and then you do a later analytics to
> calculate all the difficult to calculate gains. May be you even outsource
> this to somebody else.
>
> I am sorry I do not have straight answer to your question, but I will
> think how I would approach this.
>
> On Wednesday, March 11, 2026 at 11:29:34 AM UTC+1 SomeCallMeTim wrote:
>
>> I’ve been working on a pattern to track:
>>
>> * EUR cash lots with USD basis (for U.S. section 988-style FX gain/loss)
>> * A stock traded in EUR, with cost basis in EUR (not USD)
>> * Capital gains in both EUR and USD for tax reporting
>> * FX gain only when EUR is actually disposed (when a stock is bought with
>> EUR, or when a EUR to USD conversion occurs)
>>
>> I’d really appreciate feedback on whether this is idiomatic Beancount and
>> if there are cleaner ways to express the same economics.
>>
>> Below is a complete, runnable example with prices/rates chosen to keep
>> the math simple. I’d love any feedback on more elegant patterns, potential
>> pitfalls, or ways to simplify this while still keeping explicit EUR lots,
>> EUR-based stock cost, and U.S. tax reporting needs (section 988-style FX
>> plus capital gains in both currencies).
>>
>> option "operating_currency" "USD"
>>
>> 1970-01-01 open Assets:US:Checking
>> 1970-01-01 open Assets:EU:Checking
>> 1970-01-01 open Assets:IBKR:BVME:IMBL
>> name: "Internazionale Imobiliare - Milan Exchange"
>> 1970-01-01 open Income:US:FX:Sec988
>> 1970-01-01 open Income:CapGains:USD
>> 1970-01-01 open Income:CapGains:EUR
>> 1970-01-01 open Equity:Tax:CapGains:Bridge
>> 1970-01-01 open Equity:Opening-Balances
>>
>> ; ----------------------------------------------------------------------
>> ; EUR/USD Price Table
>> ; ----------------------------------------------------------------------
>>
>> 2026-02-01 price EUR 1.20 USD
>> 2026-03-01 price EUR 1.15 USD
>> 2026-04-01 price EUR 1.25 USD
>> 2026-05-01 price EUR 1.30 USD
>> 2026-06-01 price EUR 1.40 USD
>>
>> ; ----------------------------------------------------------------------
>> ; Initial funding in USD
>> ; ----------------------------------------------------------------------
>>
>> 2026-01-01 * "Initial funding of US Checking"
>> Assets:US:Checking 5000.00 USD
>> Equity:Opening-Balances -5000.00 USD
>>
>> ; ----------------------------------------------------------------------
>> ; Buy EUR in two lots (these EUR lots later fund the IMBL buy)
>> ; Lot 1: 500 EUR for 600 USD -> 1.20 USD/EUR
>> ; Lot 2: 500 EUR for 575 USD -> 1.15 USD/EUR
>> ; Combined EUR basis: 1175 USD
>> ; ----------------------------------------------------------------------
>>
>> 2026-02-01 * "Buy EUR lot 1"
>> Assets:EU:Checking 500 EUR {"20260201"} @@ 600.00 USD
>> Assets:US:Checking -600 USD
>>
>> 2026-03-01 * "Buy EUR lot 2"
>> Assets:EU:Checking 500 EUR {"20260301"} @@ 575.00 USD
>> Assets:US:Checking -575 USD
>>
>> ; ----------------------------------------------------------------------
>> ; Buy 100 IMBL with 1000 EUR (10 EUR/sh)
>> ; At trade time, 1 EUR = 1.25 USD, so 1000 EUR = 1250 USD.
>> ; Section 988 gain on EUR used: 1250 - 1175 = 75 USD.
>> ; IMBL is kept with EUR cost; FX gain goes to Income:US:FX:Sec988.
>> ; ----------------------------------------------------------------------
>>
>> 2026-04-01 * "Buy 100 IMBL with EUR, realize FX gain on EUR lots"
>> Assets:EU:Checking -500 EUR {"20260201"} @ 1.25 USD
>> Assets:EU:Checking -500 EUR {"20260301"} @ 1.25 USD
>> Assets:EU:Checking 1000 EUR @@ 1250 USD
>> Income:US:FX:Sec988 -75 USD
>> Assets:IBKR:BVME:IMBL 100 IMBL {"20260401"} @@ 1000 EUR
>> Assets:EU:Checking -1000 EUR
>>
>> ; ----------------------------------------------------------------------
>> ; Sell the 100 IMBL for EUR, no immediate 988 gain
>> ; Price: 11 EUR/sh -> proceeds 1100 EUR.
>> ; EUR/USD = 1.30, so proceeds get a new USD basis 1430.
>> ; Capital gain: 100 EUR, also tracked in USD (130 USD) for tax.
>> ; ----------------------------------------------------------------------
>>
>> 2026-05-01 * "Sell 100 IMBL for EUR, record EUR capital gain"
>> Assets:IBKR:BVME:IMBL -100 IMBL {"20260401"}
>> Assets:EU:Checking 1100.00 EUR
>> Income:CapGains:EUR -100.00 EUR
>> Assets:EU:Checking -1100.00 EUR @@ 1430.00 USD
>> Assets:EU:Checking 1100 EUR {"20260501"} @@ 1430.00 USD
>> Income:CapGains:USD -130 USD @@ 100.00 EUR
>> Equity:Tax:CapGains:Bridge 100 EUR
>>
>> ; ----------------------------------------------------------------------
>> ; Later EUR -> USD conversion (where section 988 is realized)
>> ; Assume one month later, 1 EUR = 1.40 USD.
>> ; EUR disposed: 1100 EUR
>> ; USD received: 1540 USD
>> ; FX gain: 1540 - 1430 = 110 USD (section 988-style).
>> ; ----------------------------------------------------------------------
>>
>> 2026-06-01 * "Convert 1100 EUR back to USD, realize section 988 gain"
>> Assets:EU:Checking -1100 EUR {"20260501"}
>> Income:US:FX:Sec988 -110.00 USD
>> Assets:US:Checking 1540.00 USD
>>
>>
>> Thanks in advance...
>>
>
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