@MinhT1 wrote:
No.
Section 988 covers short-term foreign exchange contracts like spot Forex trades and options for Forex traders.
Your loss is a conversion loss not resulting from a section 988 transaction and cannot be considered as a section 988 loss.
What's the difference between a conversion and a spot Forex trade transaction?
In the following discussion, the OP also converted foreign currencies to USD, and the OP was not engaging in active forex trading either:
https://ttlc.intuit.com/community/investments-and-rental-properties/discussion/q-about-section-988-f...
In particular, the Tax Expert @DaveF1006 suggested that the OP from the above post should treat such transactions as Section 988 transactions. What's the difference between that post and this post?
