Hello,
I have seached the discussion boards, but after reading several questions/answers I am more confused about my certain situation.
I am a permanent resident in the US and I had a bank account in a foreign country which I've opened a very long time ago while I was living there. Then I have moved to the US and left the money in that country with the expectation that it would appreciate against USD. I reported that bank account in my taxes and FBAR every year.
While expecting appreciation, unfortunately, the opposite happened especially with the devaluation and turmoil in that country in 2021. In June 2021, I converted all my money in that foreign bank account to USD and transferred it to the USA. Between January 2021 and June 2021, the direct loss is 100,000 USD. Can I deduct this from my taxes in the US? Can this be considered as a section 988 transaction?
Regards,
Tracadero
