Hello,

How do I calculate interest obtained from a foreign bank CD account if the CD hasn't matured yet? Is paying tax on the interest earned at maturation an option?

Also, is there a provision to reduce taxes due to losses incurred by exchange rate deprecation?

Please let me know.

Thanks.

You can claim the interest that has accrued using an amortization table, OR you want wait until the CD matures and claim the interest at that point in time. Your Choice!

The loss incurred during to change exchange rates is a different calculation entirely. Such a loss is claimed on Schedule D.

Quote:

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Originally Posted by AtlantaTaxExpert

You can claim the interest that has accrued using an amortization table, OR you want wait until the CD matures and claim the interest at that point in time. Your Choice!

The loss incurred during to change exchange rates is a different calculation entirely. Such a loss is claimed on Schedule D.

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Thanks for the reply. Can I claim loss incurred due to exchange rate fluctuation without repatriating the amount back to USD? What I mean is I don't want to bring my money back but just want to leave it in the foreign account.

In order to claim such a loss, you must actually experience the loss by converting the money from rupees to USD.