theOAP

The 988 transaction is an entirely separate tax event to the sale of the property. The question is: is a 988 transaction an investment? I don't know the answer to that. It's only an issue if your income takes you over the NIIT threshold.

jimakos

Well if 250k is the threshold then i'll be impacted. But it was not an investment. It was my main home.
If it was considered an investment then wont the other QBU factors count? (Using a non functional currency?)

theOAP

The question has nothing to do with the property. The question is about a gain on a foreign debt obligation. Is a gain on a foreign debt obligation considered an investment gain? Probably not, but it should be confirmed.

jimakos

I was referring to my income and not anything from the sale. I believe all the "horror" stories i heard form colleagues only had an FX gain on the mortgage disposal, no other additional taxes but I might be wrong.