Thank you DaveF1006,
Do you know on which amount we can claim currency loss for foreign bank CDs. For instance, I transferred $100 to invest in a 10 year bank CD when currency rate was ($1 to Rs.10). I earned interest every year on that CD which I reported to IRA every year. I have earned total of Rs. 1000 in interest at the end of the 10 year CD. Now, at the maturity date I have Rs. 2000 (Rs. 1000 principal + Rs. 1000 interest earned) in my foreign account. When I convert Rs. 2000 to USD ($1=Rs. 20), Do I claim currency loss on the whole amount (Rs. 2000) and report that amount as currency loss?
Thank you,
HPP1
