Greetings,
I just read the following in IRS Publication 550 on page 29:
I just read the following in IRS Publication 550 on page 29:
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Loss transactions.
For individuals, a loss transaction is any transaction thta results in a deductible loss if the gross amount of the loss is at least $2 million in a single tax year or $4
million in any combination of tax years. A loss from a foreign currency transaction under Internal Revenue Code section 988 is a loss transaction if the gross amount of the loss is at least $50,000 in a single tax year, whether or not the loss flows through from an S corporation or partnership.
So, is this to be understood that an individual can't write off any losses under section 988 unless I have loss of at least $50,000?? That's shocking if this is true.