I'm not a FOREX Trader, just retail guy that was compensated in stock denominated in GBP. I subsequently sold the stock and received GBP. I held the GBP for over 1 year and through broker (Interactive Broker) sold GBP for USD on the spot market for a loss (using the basis determined by GBP/USD at time of stock sale). Is this still consider a Section 988 Transaction, in which I can show a loss in Other Income or do I have to report as a capital gain/(loss) which would be limited to loss of $3,000? I can't find this particular transaction in the definition of Section 988 Transaction. The definition of Disposition, in the definition that says "disposition of any nonfunctional currency" is a Section 988 Transaction, is very complicated and refers to stock, but it is impossible to decipher. Any advice?
Thank you!
