A good friend of mine…works for the IRS in upstate New York. Yesterday he and I have been digging…IRC988…is one of our Internal Revenue manual codes…IRC 988 deals with how the IRS taxes gains and losses from foreign currency transactions. A foreign currency exchange rate gain happens when you deal in foreign currency…and the exchange rate changes. You end up with more dollars than expected…IRC section 988 considers it a foreign currency gain…By default IRC 988 gains/losses are taxed as ordinary income like wages, not capital gains. That means gains are taxed at your normal tax rate… Thom [dinar guru Note: Consult your tax professional to determine the ideal tax strategy for your unique circumstances.]
