Us Tax Submission: Official Thai Baht:$ Rate

[Tiger7Moth]

The FAQ section of the US Embassy web site in Bangkok states:

"What is the official exchange rate for 2004 for tax purposes?

The official exchange rate for 2004 is 39.41 Baht to the Dollar.".

But, nothing is stated for 2005. Does anyone know the "official rate for 2005?

Thanks

[lopburi3]

40.252

http://www.federalreserve.gov/releases/g5a/current/

[Tiger7Moth]

40.252

http://www.federalreserve.gov/releases/g5a/current/

Well, thanks for the reply. But, confusing since the 2004 figure does not agree with that shown by the Embassy in BKK.

[lopburi3]

From IRS official web site FAQ with hot link to page I provided:

13.2 Aliens and U.S. Citizens Living Abroad: Exchange Rate

Is there an Internet site with the exchange rates to convert foreign currencies to American dollars?

You can obtain currency exchange rates at the Federal Reserve Board web sites.

References:

Federal Reserve Board

More Frequently Asked Tax Questions

http://www.irs.gov/faqs/faq13.html

If you don't like that rate you can use Oanda to determine the rate which comes out at 40.30610

((use interbank rate for Jan 1, 2005 through Dec 31, 2005))

http://www.oanda.com/convert/fxhistory

[lopburi3]

While we are on the subject of tax and reports this might be a good time to remind those who have had over 10k in a foreign account during the year that a special report has to be mailed to the Treasury Department using Form TD F 90-22.1 on or before June 30.

[Tywais]

I've always used the Bank Of Thailand historical data for IRS needs with no problems.

http://www.bot.or.th/bothomepage/databank/...nge_range_e.asp

[lanny]

While we are on the subject of tax and reports this might be a good time to remind those who have had over 10k in a foreign account during the year that a special report has to be mailed to the Treasury Department using Form TD F 90-22.1 on or before June 30.

The requirement for filing TDF 90-22.1 applies if the total of ALL financial accounts adds up to $10,000 or more at any time during the year. You are supposed to include any brokerage accounts in this report, not just bank accounts.

I had a client who transferred money to his Thai bank account to buy a piece of property and immediately paid it out. Even though the average balance was very small, the fact that for two days it was over $10,000 wan enough to require the report.

Also, you are supposed to include accounts for which you have signature authority, not just accounts in your name. If you can sign checks on your company's accounts, you may be covered.

This report is used for money laundering monitoring, not income tax compliance.

[lopburi3]

Yes and it is a very simple form for most of us mortals. Although it is not a part of tax payment it is best to remember it at that time when you have figures available and not as likely to forget (using the June 30 date).

[Tiger7Moth]

From IRS official web site FAQ with hot link to page I provided:

13.2 Aliens and U.S. Citizens Living Abroad: Exchange Rate

Is there an Internet site with the exchange rates to convert foreign currencies to American dollars?

You can obtain currency exchange rates at the Federal Reserve Board web sites.

References:

Federal Reserve Board

More Frequently Asked Tax Questions

http://www.irs.gov/faqs/faq13.html

If you don't like that rate you can use Oanda to determine the rate which comes out at 40.30610

((use interbank rate for Jan 1, 2005 through Dec 31, 2005))

http://www.oanda.com/convert/fxhistory

I was at the US Embassy today on another matter and asked the rate. The rate they gave me agrees with Oanda 40.30

[OldAsiaHand]

The IRS regs used to provide that any foreign currency transactions included in US income tax reporting were to be converted at the applicable bank rate on the date of the transaction, not averaged out over the year at some sort of 'official rate.' Isn't that still the case, or have the regs been changed?

Regardless, as a practical matter, I doubt any but the meanest examiner would quibble with an averaging process so long as the result was reasonable.

[lopburi3]

The IRS regs used to provide that any foreign currency transactions included in US income tax reporting were to be converted at the applicable bank rate on the date of the transaction, not averaged out over the year at some sort of 'official rate.' Isn't that still the case, or have the regs been changed?

Regardless, as a practical matter, I doubt any but the meanest examiner would quibble with an averaging process so long as the result was reasonable.

Believe this quote from the US Embassy Germany sums it up well. Mine is just interest two times a year so use the date of payment myself.

5. What is the average exchange rate for the Euro to the Dollar for the tax year 2005?

The IRS has NO official exchange rate. Taxpayers have always been required by Internal Revenue regulations 1.905-3 and 1.988 to translate foreign income into dollars on the date of payment. As a practical matter, a wage earner can use a yearly average with no problem. A self-employed individual usually benefits by converting at the date of payment. The IRS accepts any posted exchange rate that is used consistently.