If a US citizen were to exchange USD to some other currency, and then some time later, exchange that currency to yet another but not back to USD nor spent for goods or services (yet), is that a realized gain/loss for tax purposes?
For instance, suppose that USD is converted to GBP, which is then converted to EUR:
- Is any gain/loss in value when converting GBP to EUR considered "realized" at this time for tax purposes?
- If so, is it valued at the USD/GBP rate? or the USD/EUR rate?