Thanks.
Some of these USD funds were converted into turkish lira, and then after the deal falls apart (2 days later), turkish lira is converted back to USD for wiring back to US. Unfortunately, lira depreciated against USD by 1% which created a loss of 1% of the original USD principal. This reduced $320K to $316K. Is this loss deductible as either capital loss (in schedule D) or as forex loss (as other loss in schedule 1)?
