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Posted: Jan 10th 2008 2:53AM (Unverified) said

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Not separately. Your L$ valuation falls under Capital Gains and is taxed as such, so a loss would be an offset to that. I believe the same applies in the UK.

On the downside, the record-keeping is more complex - on the plus side, the tax rates for CGT are lower than you'd pay if you simply claimed your US$ value of cashed monies as income.
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