I understand that when I make a profit on foreign currency exchanges in excess of $200, I need to pay capital gains to the IRS.
However, it isn't entirely clear to me when I am considered to have completed such a transaction.
I am a US national and previously resided in Country A, where I kept a local savings account in currency A (from local wages paid to me in this currency). I have since moved to Country B. I want to transfer my savings from Country A in Currency A to Country B in Currency B. Neither currency is USD, and I didn't earn the money in USD. In such a case, will I owe capital gains tax on the difference between when I first acquired Currency A, and the rate its worth now against USD? Or since I am still not converting my savings to USD, do I not owe capital gains on it?
If I were to use some of my savings to purchase something abroad, would I then owe capital gains even though I have not involved USD (since the value of my savings in Currency A has appreciated against USD over the years)?