Hi,
I have created a full post here on this topic giving lot of details from various different sources. None of the tax accountants I called have any clear idea how to handle this. IRS cannot be illogical to expect that we pay taxes when we receive interest from foreign CD every year but not show losses when we convert money back to USD. I lost almost the full principal amount but paid lot of taxes over the years for the interest I did not convert to USD at that time and when I finally converted the money to USD the principal and interest both had losses. Is there any way to get this confirmed from tax experts in IRS as this will help many people to correctly file their taxes? Really appreciate the help TurboTax team is providing here.
Thanks,
MS
