Foreign currency losing value -- can I report this as a loss for tax purposes?
I live in the U.S., and I have a savings bank account in Ukraine.
The money on that account were in UAH (Ukrainian Hryvnia), which lost ~50% of its value during 2014. This means the amount on my account decreased 2x when converted to USD.
The question is:
Can I somehow report this as a loss (investment loss?) to IRS (to decrease the amount of taxes I should pay for 2014)?
Note: I've reported this account properly to the IRS before 2014.
Thanks.
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This loss would be unrealized and, assuming you're a cash-basis tax-payer, you would not be able to take a loss on your 2014 tax return. This is similar to if you held a stock that lost 50% of its value. You wouldn't be able to claim this loss until you finally sold it.
The link that User58220 posted may come into play if you converted your UAH back to USD.
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