MS,
Thanks for a very detailed post. After many hours of research, I've come to the exact same conclusions as you. Logically a) IRS should allow the adjustment for losses, b) the losses should be offset against the ordinary income per irs reg 988, an c) the references to Time Deposits in 988 are merely a clarification that rolling over of CDs aren't a reportable event under 988.
However, we are not seeing any concrete or pursuasive response back from the experts. Given that Foreign CD is a very popular investment vehicle, you would expect a firm direction from the TurboTax team.
@DaveF1006 , @Mike9241,@ThomasM125, @pk, Please review and help us out here! Appeciate your support!
