Exchange gain or loss
(e) Exchange gain or loss. The term exchange gain or loss means the amount of gain or loss realized as determined in 1.988-2 with respect to a section 988 transaction. Except as otherwise provided in these regulations (e.g., 1.98B-5), the amount of exchange gain or loss from a section 988 transaction shall be separately computed for each section 988 transaction, and such amount shall not be integrated with gain or loss recognized on another transaction (whether or not such transaction is economically related to the section 988 transaction). See 1.988-2 (b)(8) for a special rule with respect to debt instruments.