I was the personal representative and beneficiary for my mothers US estate which had some foreign financial accounts. It was below the threshold to pay any estate tax. I filed and paid US estate income taxes on form 1041 on the foreign income earned by the estate before I inherited it. I also filed FBAR for the estate. Once I received the funds from inheritance in my foreign account I paid US taxes (1040) on the foreign income and filed FBAR for myself.
The foreign currency depreciated substantially between the time my mother passed and when I actually got the funds into my foreign account. The currency depreciated further before I was able remit it to the US.
I therefore suffered loss from currency conversion. First, the loss from the date she passed to the date I got funds into my account and second, the loss once it was in my account to the time of remittance.
How can I take both these currency conversion losses?
