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Posted by Lon on February 7, 2008, 5:36 pm
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My wife and I are residents of California and U.S. citizens. She has
dual citizenship, New Zealand and U.S.A. We have a joint savings
account in New Zealand which is inheritance from her family.
The amount is substantial and over $10,000 USD. I have reported the
2007 interest paid to the account as well as the Non Resident With
Holding Tax payed to the NZ government on Turbo Tax.
My question is--------do I use USD amounts by converting NZD dollars,
or do I use NZD amounts and the IRS does the conversion?
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Posted by sgallagher@rogers.com on February 7, 2008, 7:18 pm
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> My wife and I are residents of California and U.S. citizens. She has
> dual citizenship, New Zealand and U.S.A. We have a joint savings
> account in New Zealand which is inheritance from her family.
> The amount is substantial and over $10,000 USD. I have reported the
> 2007 interest paid to the account as well as the Non Resident With
> Holding Tax payed to the NZ government on Turbo Tax.
> My question is--------do I use USD amounts by converting NZD dollars,
> or do I use NZD amounts and the IRS does the conversion?
You should report the income on US tax forms in US dollars. To
convert
the income from NZD to USD you have the option of using an average
exchange rate for 2007, which the IRS can provide to you. Or, you can
use
the exchange rates that were in effect on the individual days that you
received
interest payments into the account, and calculate each payment's
conversion
separately.
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<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2007) - All rights reserved. >>
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Posted by removeps-groups@yahoo.com on February 11, 2008, 2:08 pm
Please log in for more thread options wrote:
> you have the option of using an average
> exchange rate for 2007, which the IRS can provide to you.
What is the website for the average exchange rate?
> Or, you can
> use
> the exchange rates that were in effect on the individual days that you
> received
> interest payments into the account, and calculate each payment's
> conversion
> separately.
For daily exchange rates I use <http://www.oanda.com/convert/
fxhistory>, and "Typical cash rate: +4%".
--
<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2007) - All rights reserved. >>
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Posted by removeps-groups@yahoo.com on February 24, 2008, 7:06 pm
Please log in for more thread options On Feb 11, 11:08 am, "removeps-gro...@yahoo.com" <removeps-
gro...@yahoo.com> wrote:
> > you have the option of using an average
> > exchange rate for 2007, which the IRS can provide to you.
>
> What is the website for the average exchange rate?
For anyone who's interested, I found <http://www.irs.gov/businesses/
small/article/0,,id=130524,00.html>. At the bottom are several links,
and one of them is the one I mention below.
> For daily exchange rates I use <http://www.oanda.com/convert/
> fxhistory>, and "Typical cash rate: +4%".
But the government website does not look correct because they use the
interbank rate. Consider an example. The treasury department website
at http://fms.treas.gov/intn.html#rates says the exchange rate for US
Dollar to South African rand is
12/31/2007 6.85470000
However, the website oanda.com says the conversion on 12/31 is
6.85470000 only if you use the interbank rate.
But any person who moves money around would probably get the typical
cash rate, which is the interbank rate plus 4%, in which case the
exchange rate would be 7.12888.
Do they publish any guidance on which exchange rate to use?
--
<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2007) - All rights reserved. >>
<< ------------------------------------------------------- >>
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Posted by L K Williams on February 25, 2008, 8:18 am
Please log in for more thread options On Sun, 24 Feb 2008 19:06:51 EST, "removeps-groups@yahoo.com"
>On Feb 11, 11:08 am, "removeps-gro...@yahoo.com" <removeps-
>gro...@yahoo.com> wrote:
>
snip
>
>But any person who moves money around would probably get the typical
>cash rate, which is the interbank rate plus 4%, in which case the
>exchange rate would be 7.12888.
>
>Do they publish any guidance on which exchange rate to use?
Many of the tax returns I prepare for clients involve foreign earnings
which must be translated to dollars. For several years, I have used
the rates published by the Federal Reserve --
www.federalreserve.gov/release/G5a/Current/ which is posted annually.
The US Embassy in Bangkok posts this list as guidance for Americans in
Thailand.
Since this is a rate published for use by government agencies to use
in official accounting documents, it should satisfy your needs.
Lanny K. Williams, CPA
Nawarat, Williams & Co., Ltd.
Income Tax Services for Expatriate Americans
--
<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2007) - All rights reserved. >>
<< ------------------------------------------------------- >>
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