e.g. I bought Euro 1,000 for $1,400. Now I sold it for $1,500. Is that $100 Ordinary income OR Capital gain?
TIA
e.g. I bought Euro 1,000 for $1,400. Now I sold it for $1,500. Is that $100 Ordinary income OR Capital gain?
TIA
My answer is based on my reading of section 988, and could be wrong.
Assuming you sold for $1800, then the gain would be ordinary income.
What if you make a vacation to Europe and just spend the EUR 1000 over there? I would think there would be no tax.
" snipped-for-privacy@yahoo.com" wrote in news: snipped-for-privacy@g4g2000pri.googlegroups.com:
I'm not so sure. What about another example:
I inherit ?10,000.00 in 2002. In 2008 I send the quivalent of ?5,000.00 to my bank account in the US. Assuming simplified exchange rates of $0.90/? in 2002, and $1.40/? in 2009, I would have had a gain of over
50%, which I think I should have to report as capital gains, not ordinary income. At least, I have in the past followed this scenario.BeanSmart website is not affiliated with any of the manufacturers or service providers discussed here. All logos and trade names are the property of their respective owners.