Recently Japanese Yen became even weaker to almost 145 yen per USD. I received a question from a client today whether exchange gain will be reportable or not for Japanese Income Tax. It would feel a bit unreasonable if one had to pay tax on the gain if her savings were accumulated even before she became a tax permanent in Japan. She has a plan to buy a house in Japan and is thinking of moving her money from US.
There are several sources for her saving. Some are from the time she came to Japan, some are from her salary in Japan. The latter case is simple and sounds quite understandable that it is taxable. But what about the former?