In the US a currency windfall can be taxed at up to 40.8% as ordinary income…Foreign currency gains fall under section 988 of the Internal Revenue Code. They are taxed as ordinary income not capital gains.
That means your marginal rate is up to 37% federal plus state, plus the 3.8% net investment income tax above $200,000. The combined effective rate reaches up to 40.8%. : Reset Intelligence
