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    collegian's Avatar
    collegian Posts: 57, Reputation: 1
    Junior Member
    		  
    #1

    Feb 6, 2016, 02:56 PM
    Tax on foreign CD account interest
    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.
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
    		  
    #2

    Feb 6, 2016, 03:49 PM
    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.
    collegian's Avatar
    collegian Posts: 57, Reputation: 1
    Junior Member
    		  
    #3

    Feb 8, 2016, 10:30 PM
    Quote Originally Posted by AtlantaTaxExpert View Post
    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.

    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.
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
    		  
    #4

    Feb 8, 2016, 11:11 PM
    In order to claim such a loss, you must actually experience the loss by converting the money from rupees to USD.
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