Hello,
As an expat living overseas, I can use the double taxation treaty between the US and a foreign Country.
My mother had 30 year savings bonds and never paid interest while alive in the US, the
total amount is taxed, about 75% is interest. The K1 forms are entered and the interest is taxed
in the US as ordinary interest income. Germany taxes the total savings bonds capital + interest.
Proportionally to taxes paid, I will enter on 1116 form.
As far as currency exchange loss I found an post between Olivert08 and DAVEF1006 that is good.
Thanks for you answer.