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Tax Treatment of Foreign Exchange Gains and Losses and the Tax Reform Act of 1986

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  • Wahl, Jenny Bourne

Abstract

Documents the changes in the taxation of foreign exchange gains and losses brought about by the Tax Reform Act of 1986. Explains that the timing of recognition of foreign exchange gains and losses is important in determining the effective tax rate on foreign-currency-denominated assets.

Suggested Citation

  • Wahl, Jenny Bourne, 1989. "Tax Treatment of Foreign Exchange Gains and Losses and the Tax Reform Act of 1986," National Tax Journal, National Tax Association;National Tax Journal, vol. 42(1), pages 59-68, March.
    • Handle: RePEc:ntj:journl:v:42:y:1989:i:1:p:59-68
    DOI: 10.1086/NTJ41788773
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    References listed on IDEAS

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    1. Daniel Frisch, 1983. "Issues in the Taxation of Foreign Source Income," NBER Chapters, in: Behavioral Simulation Methods in Tax Policy Analysis, pages 289-332, National Bureau of Economic Research, Inc.
    2. Hartman, David G., 1985. "Tax policy and foreign direct investment," Journal of Public Economics, Elsevier, vol. 26(1), pages 107-121, February.
    3. Frenkel, Jacob A, 1981. "Flexible Exchange Rates, Prices, and the Role of "News": Lessons from the 1970s," Journal of Political Economy, University of Chicago Press, vol. 89(4), pages 665-705, August.
    4. Mussa, Michael, 1979. "Empirical regularities in the behavior of exchange rates and theories of the foreign exchange market," Carnegie-Rochester Conference Series on Public Policy, Elsevier, vol. 11(1), pages 9-57, January.
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