Currency Exchange gains and losses for transferred normal money

patamelia

Hello,

I still haven't received an answer to my question. How can I enter currency exchange losses, that I received converting dollars to another currency?

Is it considered as ordinary income and is non-taxable/non-deductible or can I treat it as a capital gain or loss?

I entered this information using step-by-step and generating a 1099-B. I managed that Schedule D+8949 were generated.

I gave in the data for 4 transactions with type inherit, but noticed that it should probably be a type short term and entered the dates acquired. I did this change over Step-by-Step, but it still shows up long term. Does it make no difference. The 1099-B wks. is generated correctly. But with no Dates. The 8949 has only the proceeds date.

What is the correct way to navigate? I am probably doing something wrong. The input screens are not very clear.

Thanks for any help.

pk

@patamelia , I am not sure that I understand the situation fully.

(a) Should I assume that you are a US person ( citizen/GreenCard/ Resident for Tax Purposes ) ?

(b) Assume your Tax home to US

(c) What is the source of the foreign currency ? You talk about inheritance -- is that it ? You received cash ( foreign currency ) inheritance? Or that you received asset that you sold/ bartered for cash ? or what ?

(d) If on the other hand , if you loss is because of round-trip conversion ( US$ to Foreign Currency and back to US$ ), then generally this is personal loss and not a tax event.

(e) Which currency are we talking about or is multiple currencies ?

So please tell me more about the situation and I will circle back.

pk

Currency Exchange gains and losses for transferred normal money

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