: How does one book a currency exchange loss? How does one book a currency exchange loss? Let's assume: I have an account in GBP. I have an account in USD. I pay taxes in USA. Let's assume following transactions: I made

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How does one book a currency exchange loss?
How does one book a currency exchange loss?

Let's assume:

I have an account in GBP.
I have an account in USD.
I pay taxes in USA.

Let's assume following transactions:

I made 100k GBP in the beginning of 2016 and booked it at 150k USD.
I converted 100k GBP to USD at the end of 2016 and received 125k USD.

Tax time is there so let's assume:

I pay 25% taxes on income. That's 25% of 150k USD.

Question:

How do I book the loss of 25k USD because of currency conversion?
What if I only converted 50k GBP at the end of 2016?

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