Rick Merrill <rick0.merrill[at]gmailNOSPAM.com> wrote:

<snip> IMHO you cannot take a capital gain loss for curency
- quote -

Let me start over again, please. I am talking about the
dollar having been devalued by ~50% against the Euro. This
means that every Euro my father left me has increased in
value from ~$0.85 upon his death to ~$1.30 now, leading to
capital gains when the Euros are sold. I concur with
previously expressed opinions here that those capital gains
constitute a taxable event.

I sold Euros in 2004, and am now stuck with paying Uncle Sam
tax on those capital gains. I also gifted money to my kids.

My question:
If I directly deposit $$ into my kids checking account from
the Euro account, do I still have to pay capital gains tax
on money that never was in my (US) bank account?

--
Best regards
Han
email address is invalid

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Han wrote:
- quote -

IMHO you cannot take a capital gain loss for curency
devaluation.

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Rick Merrill <rick0.merrill[at]gmailNOSPAM.com> wrote:
- quote -

The funds were Euro-denominated, and I instructed ABN-Amro
to deposit US dollars into my US checking account.

To calculate capital gains, I took the number of $
transferred as the "sale price". Then I took the number of
Euros debited (plus the transfer fees), and calculated as
basis the number of dollar equivalents on the day of Dad's
death as found for that date's Euro-$ exchange rate.
Subtraction found the capital gains, which was considerable
due to the ~50% devaluation of the dollar since October
2002.

--
Best regards
Han
email address is invalid

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Han wrote:

- quote -

Do you mean that you kept the money AS Dutch Guilders and
did not convert to US dollars???

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In the past I have transferred funds I inherited from
Holland to my own US bank account. As I understand it I
have to calculate and pay capital gains taxes since the US $
has devalued appreciably since October 2002. I have also
gifted money to my grown children and to my grandchildren.

Can I legally circumvent those capital gains if I send the
Dutch funds directly to the children/grandchildren? This
would be done by having the Dutch bank deposit dollars
directly into their checking accounts.

Thanks for any enlightenment!

Dick: Good luck with your computer problems!

--
Best regards
Han
email address is invalid

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