A few years back, I invested in CDs overseas, in foreign currency and reported interest income, paid taxes annually. However starting last year I have started liquidating the CDs.. but when it coverts back to USD, the amount results in loss of principal and by the time i am done, likely going to lose all the interest on which I have paid income tax on. Can I report this loss under 'other income' schedule 1 line 8z as a negative number? (as per the discussion in the link below). Wanted to confirm if Certificates of deposits qualify under Sec 988
https://ttlc.intuit.com/community/tax-credits-deductions/discussion/how-do-i-report-foreign-exchange...
Secondly, does NJ recognize this loss and if so, where does this go on the NJ return? any negative number returns an error in Turbotax.
