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First off this references businesses not individuals, but regardless: > do not have to be accounted for unless the fluctuations change the cash flow for the bu
by hanniabu 7y ago
First off this references businesses not individuals, but regardless:
> do not have to be accounted for unless the fluctuations change the cash flow for the business
If there is a change in value then it needs to be reported. It's the same concept as if you were forex trading.
- iudqnolq 7y agoYou are right on both counts. I realize in retrospect my source is inadequate. I am trying to prove a negative, however. Do you have any evidence for your claim individuals should report profits and losses on their foreign currency transactions abroad?
- hanniabu 7y agoIt really doesn't matter if it's spent in the US or abroad. At the time it is spent, you need to take the difference in transaction rates. It's the same concept as if you are making payments in something like Bitcoin. Unfortunately I don't have any sources on hand, but I have a friend that forex trades and I myself have been following the cryptocurrency regulation scene and the same rules transfer to here. However, this is one of those things where the government isn't going to come knocking your door down for since it's petty cash.
- iudqnolq 7y agoWhat you say makes logical sense but I couldn't find any supporting sources for the idea that spending money abroad on foreign goods is equivalent to forex trades for tax purposes.