- Mark as New
- Bookmark
- Subscribe
- Subscribe to RSS Feed
- Permalink
- Report Inappropriate Content
On my tax return I am using the yearly average IRS exchange rate for foreign income.
Do I use this as well for reporting foreign bank accounts on Form 8938 or the Treasury Exchange Rates required for FBARS?
posted
March 27, 20235:39 AM
last updatedMarch 27, 20235:39 AM
3
1,098
Connect with an expert
Do you have an Intuit account?
You'll need to sign in or create an account to connect with an expert.
1 Best answer
Accepted Solutions
- Mark as New
- Bookmark
- Subscribe
- Subscribe to RSS Feed
- Permalink
- Report Inappropriate Content
Form 8938 and foreign exchange rates
The IRS says in this document:
If your functional currency is the U.S. dollar, you must immediately translate into dollars all items of income, expense, etc. (including taxes), that you receive, pay, or accrue in a foreign currency and that will affect computation of your income tax. Use the exchange rate prevailing when you receive, pay, or accrue the item. If there is more than one exchange rate, use the one that most properly reflects your income. You can generally get exchange rates from banks and U.S. Embassies.
If you earned your income throughout the year, you can use the yearly average exchange rates.
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
March 27, 20236:12 AM
1,060
3 Replies
- Mark as New
- Bookmark
- Subscribe
- Subscribe to RSS Feed
- Permalink
- Report Inappropriate Content
Form 8938 and foreign exchange rates
You should use the rates published by the US Treasury in this Treasury.gov document.
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
March 27, 20235:56 AM
2
1,066
- Mark as New
- Bookmark
- Subscribe
- Subscribe to RSS Feed
- Permalink
- Report Inappropriate Content
Form 8938 and foreign exchange rates
and stick with the the IRS yearly rate for reported foreign income?
March 27, 20235:58 AM
1
1,065
- Mark as New
- Bookmark
- Subscribe
- Subscribe to RSS Feed
- Permalink
- Report Inappropriate Content
Form 8938 and foreign exchange rates
The IRS says in this document:
If your functional currency is the U.S. dollar, you must immediately translate into dollars all items of income, expense, etc. (including taxes), that you receive, pay, or accrue in a foreign currency and that will affect computation of your income tax. Use the exchange rate prevailing when you receive, pay, or accrue the item. If there is more than one exchange rate, use the one that most properly reflects your income. You can generally get exchange rates from banks and U.S. Embassies.
If you earned your income throughout the year, you can use the yearly average exchange rates.
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
March 27, 20236:12 AM
1,061
Still have questions?
Get more help
Ask questions and learn more about your taxes and finances.
Related Content
justbecauseiwantto
New Member
blackcat707
Level 1
cparke3
Level 4
MS456
Level 2
seapoodle
Level 1