HopeS
Expert Alumni

Deductions & credits

 

It depends, holding foreign currency in an investment portfolio can generate taxable gains and losses. Losses are fully deductible from ordinary income, without limits, and gains are taxable at ordinary income rates. 

However, it appears you are holding a foreign CD which would not be the same as holding foreign currency in an investment.

 

See below for additional information. 

 

How to report section 988

 

@Jo62 

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