In as brief as possible…?
Let’s say I acquired some currency from another country. This currency is valued more in USA. (1) is this a taxable event? (2)Why, It’s still the same amount of money even though it’s exchange in the USA?
Can it be exchanged at a different country and possibly avoiding USA taxes?
The US Government, and I believe one country in Africa, are the only governments that tax you on your world wide income no matter where you are living and working. Some countries tax worldwide income, but only if you are tax resident of that country in that specific year of earning. If you make money on exchanging money, that added income is also taxable. There are people who earn their entire living on trading currencies. The US wants their piece of the pie no matter where you make it or how you make it. They even expect people to pay taxes on gains from criminal activities.