Hi
Thanks to all those who contributed to a question from geauga. In this post, I will give further clarification of my initial post of last year.
Before taking up tax residency and citizenship in USA, I had some fixed deposits in foreign currency. Since then, I went on getting them renewed after every 3 years. At the end of each year, I went on paying taxes here in USA on interest incomes on those deposits.
I have now closed some of my old deposits and got proceeds here in USA.
I notice that proceeds my original deposit of say $100 (converted from foreign currency in US$) in year 2000 is now reduced (after earning 6% to 10% compound interest in each term) to $75 in 2020 because of depreciation of that foreign currency. It means loss of $25 in capital plus US taxes that I paid during the last 20 years on that deposit. Here are my questions:
1. How do I calculate capital loss of a fixed (term) deposit because of depreciation in a foreign currency?
2. Where do I report capital loss in schedule B?
3. Any other suggestion.
Thanks again, geauga
