British Expats - IRS Average Yearly Exchange Rates

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IRS Average Yearly Exchange Rates

Looking at the IRS instructions for the 2015 tax year exchange rates it seems that they have changed how the exchange rate is applied. I cannot see in the instructions the previous guide that if payments were received at regular intervals over the year, the average rate could be used.

Instead it now only says:-

Quote:

You must express the amounts you report on your U.S. tax return in U.S. dollars. Therefore, you must translate foreign currency into U.S. dollars if you receive income or pay expenses in a foreign currency. In general, use the exchange rate prevailing (i.e., the spot rate) when you receive, pay or accrue the item.

The use of the spot rate would mean paying tax on a higher amount than it is possible to achieve by a regular exchange using either a broker or high street bank.

https://www.irs.gov/Individuals/Inte...Exchange-Rates

https://www.irs.gov/Individuals/Inte...Exchange-Rates

Re: IRS Average Yearly Exchange Rates

I think I'll keep on doing it the old way. I'll be damned if I put more effort/complication into it just because of some change in the small print.

Re: IRS Average Yearly Exchange Rates

Quote:

Originally Posted by robin1234 (Post 11836609)

I think I'll keep on doing it the old way. I'll be damned if I put more effort/complication into it just because of some change in the small print.

I was thinking very much along those lines to. Be interesting to see if they actually publish an average rate for 2015.