Thanks. The foreign currency was under a savings account which can be considered as an investment. I have heard that, it comes down to the intent of the individual. If I could demonstrate that I held the funds overseas as an investment, with the believe that it would appreciate in value because of currency fluctuations, then I would have a valid argument that he owned a traditional investment and lost money when I disposed of it. If this is true, then one would think a loss deduction under 988 would be allowable. Would you agree with this?
