@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
