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Gold/Mining/Energy : Big Dog's Boom Boom Room
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To: Biomaven who wrote (186908)12/4/2014 6:46:37 PM
From: Elroy Jetson  Read Replies (1) of 206326
 
Gosh, my de minimus was obese.

As the website you posted says, "personal currency losses, not related to business or investment, are definitely not deductible.

law.cornell.edu

The code and Tax Court case law is notably silent on currency gains and losses in ordinary personal bank accounts, where an actual foreign currency is kept. I'd take it to tax court and win. Just so long as the bank account is not associated with a business or trade, and not part of a larger investment. Some American banks offer accounts "alleged to be in a foreign currency" but these are actually treated as a type of futures contract, which they are in fact.

If you put $400k in a Mexican bank account and the currency is devalued by 50%, the loss is not deductible - that's actual Tax Court case law. The IRS would look legally peculiar attempting to claim a 100% currency gain in a Mexican bank account would be taxable.
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