Originally Posted by alexxifo
It would be great if I could offset my stock gains with my foreign currency investment losses.
Does anyone know?
You can deduct your losses from trading in foreign currency on Sch D /8949 just like you would for sale of stock or real property as a capital loss.
Short term capital loss is first used to offset short term capital gain. Remaining loss is then used to offset long term capital gain. Any remaining loss up to 3k may be used to offset ordinary income , salaries,wages, interest, etc and excess is carried over to the following years where the character ,long term or short term, will again apply.The trade must be for investment purposes and not just in the general catagory normal while traveling or making foreign personal purchases.