artp Posted April 6, 2013 Report Share Posted April 6, 2013 Client purchased about $20,000 US dollars in foreign currencies in 2012 through Sterling Currency Group. Client took physical possession of the currency. For 2012 nothing was sold or traded. They are still holding the currencies that they bought. What if anything do we have to report for 2012? They do not have any foreign bank accounts. This is a new issue for me, so I really appreciate some guidance here. Quote Link to comment Share on other sites More sharing options...
Guest Taxed Posted April 6, 2013 Report Share Posted April 6, 2013 So is the foreign currency hidden under the mattress or in a safe? If they have not traded then no CG or Loss. I don't think there is any reporting reqirement because it is not being deposited in a bank account. The sterling group most likely issued them a recipt or other documentation showing the sale?? I never heard of physically taking possession of the currency. Usually currency options are forward contracts! Quote Link to comment Share on other sites More sharing options...
artp Posted April 7, 2013 Author Report Share Posted April 7, 2013 So is the foreign currency hidden under the mattress or in a safe? If they have not traded then no CG or Loss. I don't think there is any reporting reqirement because it is not being deposited in a bank account. The sterling group most likely issued them a recipt or other documentation showing the sale?? I never heard of physically taking possession of the currency. Usually currency options are forward contracts!Yes, they took physical possession of the currency. They did get a confirmation receipt from Sterling, though I have not seen it yet. Thanks for the reply. This was really a strange transaction. Quote Link to comment Share on other sites More sharing options...
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