A few years ago, I purchased USD with JPY in my Shinsei account and sent the USD to an offshore investment fund. The fund has lost 10% over the past few years, however, it’s value in JPY has increased when considering FX fluctuations.
If I were to transfer the USD back into my Shinsei account (without converting to JPY), is this a taxable event? My understanding is that FX gains are only realized if I convert the USD back to JPY.
I know that Shinsei will need to report the wire transfer (from my fund back into my account) to the NTA as it is over the threshold, and I want to ensure I am getting ahead of any reporting requirements.
Thank you, and always appreciate the guidance everyone provides on this forum.
by cid386