Tom Russ <tar[at]isi.edu> wrote in
news:9c79df4d-b83e-4d3a-82d5-37477c2c0e66[at]b16g2000yqb.googlegroups.com:

- quote -

euros, but substitute either a euro country or pounds, and I agree.

I inherited euros, and I faithfully reported realized gains whenever I
"cashed in" euros to dollars by subtracting the value in dollars of the
euros converted on my father's date of death from the value on the day
of euro to dollar conversion. I used the fees imposed as adjustments to
basis. So far Uncle Sam has always gained and still would for the few
remaining euros if sold now. I would really like to declare a loss if
the dollar to euro exchange rate got below the rate on dad's date of
death. Or have I committed felonies in handling things this way?

--
Best regards
Han
email address is invalid

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On Feb 27, 3:10*pm, Harlan Lunsford <luns...[at]bellsouth.net> wrote:
- quote -


Couldn't there be circumstances in which this would be considered an
investment loss?

If the money was moved to the NZ bank and held in an interest-bearing
account for investment purposes, would that make it a short-term
capital loss?

Admittedly, the facts of the money transfer being coincident to moving
there are not favorable.

But what about a similar transaction but without actually moving to
the other country.
Say, one converted money into Euros, purchased bonds in the UK, and
then sold the bonds and converted the money back into dollars. If
there were a currency exchange loss, that would surely be deductible,
right?

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"removeps-groups[at]yahoo.com" <removeps-groups[at]yahoo.com> wrote:

- quote -

It's not going to be a casualty loss uness there is some casualty, like
the value of the NZ dollar lost value all at once due to an armed
insurrection.

Stu

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On Feb 26, 1:15 pm, jsm <jsmorti...[at]gmail.com> wrote:

- quote -

My reading of section 988 (is this even the right section?)

http://www.taxalmanac.org/index.php/...y_transactions

indicates that if this is a personal transaction (scroll towards the
end of the page), then the loss is not deductible, and gain in excess
of $200 is taxable.

However, if you were speculating on the USD, then I think your 60k is
a capital asset (just like purchasing shares of UDN). In that case,
your loss should be deductible as a capital loss. However, you must
have identified the 60k as an investment on the day you transferred
that money to New Zealand.

I wonder if the 3k could be a casualty loss -- deductible on Schedule
A, but only the loss over 10% plus $100 (or is it now $500) is
deductible, the deduction is allowed under AMT.

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jsm wrote:
- quote -

transactions, sounds like a personal loss which is not deductible.

I've lost, too, in converting back to dollars, but thankfully never as
much as 3,000.

ChEAr$,
Harlan Lunsford, EA n LA

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While briefly living in New Zealand (NZ), we deposited $60,000 (USD)
in a NZ bank and converted it to NZ dollars. Six months later, after
returning to the US, we converted the NZ dollars to USD and
transferred the monies back to a US bank. We lost about $3,000 in the
currency conversion.

Can we claim the loss on our taxes? And if so, how?

Thanks in advance.

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<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >