Spreaders of Conspiracy Theories: Unmasking the Motivations Behind the Lies

[skettios]

Does anyone have info on the official tax rate to be used for U.S. Tax purposes?

This information is normally provided by the U.S. Consulate, but it doesn't appear that they have updated their website recently.

Thanks.

[thaihome]

There is no official rate to use for your US income tax filing. From the instructions for Form 2555 line 17:

Report the amount in U.S. dollars using the exchange rates in effect when you actually received the income.

TH

Edited March 11, 2009 by thaihome

[skettios]

Answered my own question by calling the consulate directly it's 34.82.

[lanny]

Answered my own question by calling the consulate directly it's 34.82.

That must be the current rate. Last year the baht was never worth as much as 34/1.

For years, I have always used the composite rate published by the Federal Reserve in January each year. I have seen this report posted on the bulletin board at American Citizens Service in the US embassy, too. For 2008, the Fed rate was 32.982

[skettios]

Answered my own question by calling the consulate directly it's 34.82.

That must be the current rate. Last year the baht was never worth as much as 34/1.

For years, I have always used the composite rate published by the Federal Reserve in January each year. I have seen this report posted on the bulletin board at American Citizens Service in the US embassy, too. For 2008, the Fed rate was 32.982

The number they gave me is consistent with the U.S. Treasury reporting rate

http://www.fms.treas.gov/intn.html

Wonder why there is a difference between the Federal Reserve and the Treasury. Anyway, I'm taking the bigger number.

[thaihome]

Answered my own question by calling the consulate directly it's 34.82.

That must be the current rate. Last year the baht was never worth as much as 34/1.

For years, I have always used the composite rate published by the Federal Reserve in January each year. I have seen this report posted on the bulletin board at American Citizens Service in the US embassy, too. For 2008, the Fed rate was 32.982

The number they gave me is consistent with the U.S. Treasury reporting rate

http://www.fms.treas.gov/intn.html

Wonder why there is a difference between the Federal Reserve and the Treasury. Anyway, I'm taking the bigger number.

I guess you choose to ignore the correct answer.

Up to you.

TH

[Old Man River]

Answered my own question by calling the consulate directly it's 34.82.

That must be the current rate. Last year the baht was never worth as much as 34/1.

For years, I have always used the composite rate published by the Federal Reserve in January each year. I have seen this report posted on the bulletin board at American Citizens Service in the US embassy, too. For 2008, the Fed rate was 32.982

The number they gave me is consistent with the U.S. Treasury reporting rate

http://www.fms.treas.gov/intn.html

Wonder why there is a difference between the Federal Reserve and the Treasury. Anyway, I'm taking the bigger number.

Skettios, the 34.82 you are referring to is as of December 31st, not the average for the year. It is just this one day out of the year and is valid for you if all your income in 2008 was paid on this day. Otherwise, you are kidding yourself.

Lanny, several times the onshore USD buying rates got above 34:1, although they never hit 35:1. This can be found on the Bank of Thailand's website (see link below) and is the average for all Thai banks in Thailand. The average rate you mention (Fed Rate) is a bit low and probably factors in some of the offshore rates. For comparison purposes, in 2008 the monthly average onshore mid rate was 33.3134, the monthly average onshore buying T/T rate was 33.2394 and the monthly average onshore buying At Sight was 33.1414. At no place on the BOT website can I find an average that equates to 32.982, the lowest being the aforementioned At Sight rate. This is what leads me to believe that the Fed is factoring in some of the offshore rates.

http://www2.bot.or.th/statistics/ReportPag...mp;language=eng

ThaiHome, you are right in that it should be reported as received, but that still leaves the question of what rates to use on the days you received the income.

[Old Man River]

For years, I have always used the composite rate published by the Federal Reserve in January each year. I have seen this report posted on the bulletin board at American Citizens Service in the US embassy, too. For 2008, the Fed rate was 32.982

Lanny, I see now that the Fed's quoted THB/USD average exchange rate for 2008 of 32.982 is based on the daily average TT buying rate in NYC (for Customs purposes). Normally, all things being equal, the TT buying rate in Bangkok shouldn't be all that much different from the rate quoted in NYC (where USD's are cleared).

However, all things were not equal in 2008, as the Bank of Thailand used split rates to guard against speculators, making the THB harder to get outside of Thailand. This made the THB stronger in NYC than in Bangkok and explains why the Fed's quoted average 2008 TT buying rate in NYC is 32.984 (for Customs purposes) while the Bank of Thailand's quoted average 2008 TT buying rate is 33.239.

[thaihome]

It is easy for me as my company gives me a statement at the end of the year that shows the USD equivalent of the allowances I am paid in THB. It is easy for them as they are converted into USD in our accounting system when paid.

TH

[Old Man River]

Actually, at the end of the day, which exchange rate to use (Fed or BOT) won't matter for most if all the foreign income earned is under the exclusion amount. The differences in the rates are nominal and going to the most conservative one (Fed) certainly doesn't push me into a different tax bracket for my US based passive income.