Deductions & credits

Rotakie · ‎April 14, 2024

Also see this please from https://www.law.cornell.edu/uscode/text/26/988

"(C)Special rules for disposition of nonfunctional currency

(i)In generalIn the case of any disposition of any nonfunctional currency—

(I)

such disposition shall be treated as a section 988 transaction, and

(II)

any gain or loss from such transaction shall be treated as foreign currency gain or loss (as the case may be).

(ii)Nonfunctional currency

For purposes of this section, the term “nonfunctional currency” includes coin or currency, and nonfunctional currency denominated demand or time deposits or similar instruments issued by a bank or other financial institution.