pk
Level 15
Level 15

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@vshah20 , Namaste ji.   Please accept my humble apologies for the delay in response ding to your question.

 

(a) As a US person ( citizen / GreenCard / Resident for Tax purposes ), , generally your operating currency is US$

(b) Your investments are generally considered to be personal assets  ( unless you are in the business of investing i.e.  most of your incomes comes from FOREX / Foreign in vestments )  and thus while gains are taxable income, losses are generally  ( and on a stand alone basis ) not reportable.

 

Thus what I am saying is on  a dollar for dollar basis  , if there is a gain ( currency effects are included when you use your operating currency as US$),  gains/ losses are  reported just as if the stocks and bonds were domestic ( long term/ short-term ) and traded as such  -- with the added complexity of foreign exchange effects.

What you cannot recognize is a case where in you  put US$100,000  and put it in an interest bearing account in India,  at 10%  annual interest, bring it out after a year and getting back only  US$98,000 after the exchange effects.   This loss is not recognizable  because it is personal asset and because  you " knew or should have known " the risks of foreign exchange fluctuations s/ trends ds and risks thereof.

 

Also note that Stocks bonds etc. do come under  FATCA / FBAR rules 

 

Does this make sense ?   Is there more I can do for you ?

 

Namaste ji

 

pk

 

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