If I send US$ to foreign bank and convert to a foreign currency can I claim a loss if I withdraw 1/2 of the money and end up with half of my original dollars sent?

[achilles5756]

If I transfer money to an overseas bank and convert the US$ to a foreign currency and years later take 1/2 of that money and return it to the US, can I report a loss if the US$ I received are less than the 1/2 of the original dollar value sent overseas?   Example, I sent 500K US$ and converted to a Brazilian Reals and deposited it in a brazilian bank account. Years later I withdrew 1/2 of that bank account value and sent it back to the US. but the dollars received was 170K. I ended up with a loss of 80K=250K-170K.  Loss was due to exchange rate and money was sent to Brazil for sole purpose of investing in Brazilian bank CD's and Treasury bonds.   Do I have a reportable loss or do I have to withdraw all of the original capital before I can claim a loss?  If I do have a loss which form do I use to claim it?

[Critter]

No ... there is no deductible loss ... nice thought but those are the breaks in the currency exchange rates. Probably not the best investment it would seem ... now if you invested in the FOREX markets then you have deductible capital losses or gains.