r2i forum

Friends,

what exchange rates are you using for FBAR reporting (from 2003 to 2010) and tax amendments (to calculate taxes on interest amount for years 2003-2010).

IRS posted for years 2008, 2009 and 2010 (year end historical exchange rates from TREASURY) but how about previous years? The rates are not consistent in other sites such as oanda, etc.

Thanks.

r2itemp;401207Friends,

what exchange rates are you using for FBAR reporting (from 2003 to 2010) and tax amendments (to calculate taxes on interest amount for years 2003-2010).

IRS posted for years 2008, 2009 and 2010 (year end historical exchange rates from TREASURY) but how about previous years? The rates are not consistent in other sites such as oanda, etc.

Thanks.

Here is the treasury rates for past years (some one posted this on the other ovdi thread)

2000 46.7000
2001 47.9000
2002 47.8400
2003 45.4000
2004 44.6000
2005 44.9000
2006 44.0500
2007 39.5500
2008 48.2000
2009 46.4000
2010 45.7000

Is every one going to use the posted rates? In one of the OVDI faqs, IRS says "in case of countries using multiple rates, use the
one as though you are converting local currency to USD". Indian banks use 2 rates (one to buy USD, one to sell USD). Sell USD
(where they convert IRS to USD) is more than buy rate by around 2%. Should we not use this sell rate instead of buy rate.
Buy rate is same as posted in many of the sites (including IRS treasury)

xyz1398;401229IsIRS says "in case of countries using multiple rates, use the
one as though you are converting local currency to USD". Indian banks ....Sell USD
(where they convert IRS to USD)

Isn't that what they advise?

dbs;401294Isn't that what they advise?

Yes, does this mean we need to use sell rate of the bank? It will make some difference as the sell rate of the bank is 2% more than
normal exchange rate. I don't know what others doing about this.

xyz1398;401344Yes, does this mean we need to use sell rate of the bank? .

Why don't you tell me what words to use. I shall do that.

If it is sell rate of the banks, then it is good for us? Because it would reduce the total dollar value (as the total rupees per dollar is more in this case). Is it right?

xyz1398;401344Yes, does this mean we need to use sell rate of the bank? It will make some difference as the sell rate of the bank is 2% more than
normal exchange rate. I don't know what others doing about this.

In Post #7 OP has discovered that nice advantage for using the IRS recommended rate for the exchange of INRs to US$ and report a lower amount of dollars in FBAR ....happy happy !!

You naughty... Let me at least feel good for such small small things..:(

okonomi;401444In Post #7 OP has discovered that nice advantage for using the IRS recommended rate for the exchange of INRs to US$ and report a lower amount of dollars in FBAR ....happy happy !!