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?