Currency accounts

[J. Milgram]

This might be more of an accounting question, but ...

I recently sold something (from USA) to a customer in Germany. He paid
me in DM which he held there for me. The DM were later picked up by a
vacationing US-ian friend, who reimbursed me in USD. Due to exchange
rate fluctuation I came out $50 ahead over the original sales price.

I entered this according to instructions, with a DEM account and a
trading account with security "DEM". All well and good, and I guess
the books balance, but now it occurs to me that this $50 is not
captured as income anywhere. It might just as easily been a loss that
I'd want not to be taxed.

What's the correct way to handle this so everything looks right at tax
time?

thanks

Judah

Judah Milgram                             milgram@cgpp.com
College Park Press                        http://www.cgpp.com
P.O. Box 143, College Park MD, USA 20741  +001 (301) 422-4626 (422-3047 fax)