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Level 1

Repatriated my foreign CD but lost 30% of the principal due to foreign exchange conversion during repatriation (rupee to $). How to claim a loss on this investment?

Opened foreign CD in 2015 initial investment is $10000 which is converted to foreign currency (50 rupees per 1 USD). So, it is 500000Rupees.

Been paying tax for yearly interest after converting the earned interest into $.

Repatriated in 2017 but only got back $9000 after converting the rupees back into dollars.

With above example, how can one show the loss of $1000? Also, the yearly interest (for which tax is being paid annually) is already included in the $9000.

2 Replies
Level 10

Repatriated my foreign CD but lost 30% of the principal due to foreign exchange conversion during repatriation (rupee to $). How to claim a loss on this investment?

You cannot claim a loss due to the conversion rates on a CD/cash. 

Level 10

Repatriated my foreign CD but lost 30% of the principal due to foreign exchange conversion during repatriation (rupee to $). How to claim a loss on this investment?

Flip side of that situation ... if the situation had been reversed and due to the exchange rate you had made $1000 it would not be a taxable event either.