DaveF1006
Expert Alumni

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Actually what it says in this post is:

 

Coordination with section 988(c)(1)(C)(ii). No exchange gain or loss is recognized with respect to the following transactions -.

(A) An exchange of units of nonfunctional currency for different units of the same nonfunctional currency;

(B) The deposit of nonfunctional currency in a demand or time deposit or similar instrument (including a certificate of deposit) issued by a bank or other financial institution if such instrument is denominated in such currency.

 

Thus gains or losses are not recognized in Section 988 transactions.

 

@Jo62 

 

 

 

 

 

 

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