FBARs? Oh Happy Day! Exchange Rates just published!

http://www.accountingweb.co.uk/blog-post/fbars-oh-happy-day-exchange-rates-just-published

Thanks for the link, very useful.   

A rather substantial increase in the exchange rate again this year. For those that were border line in prior years, 2013 may be the year you start reporting.

Just to be clear, we use this exchange rate when calculating the maximum value of each of our bank accounts on the FBAR, correct? So regardless of the date that our account reached its maximum value, we always use the 31 December exchange rate?

Also, when filing our 1040 and 1116 we should not use these rates, but instead the annual ones posted by the IRS at http://www.irs.gov/Individuals/International-Taxpayers/Yearly-Average-Currency-Exchange-Rates

Have I got that right?

I use the site to calculate my FBAR and 8938, (the December 31st rate). You can use any average exchange rate that is consistently posted, such as Oanda for income tax purposes. The IRS state that they have no 'official' exchange rate.

I use the site to calculate my FBAR and 8938, (the December 31st rate). You can use any average exchange rate that is consistently posted, such as Oanda for income tax purposes. The IRS state that they have no 'official' exchange rate.

Remember that OANDA offers numerous rates for the same day; and that no-one (not even the IRS) requires that you use Interbank rates it first suggests.

I expect that for income tax reporting most folks use the IRS unofficial rates for convenience.

Just to be clear, we use this exchange rate when calculating the maximum value of each of our bank accounts on the FBAR, correct? So regardless of the date that our account reached its maximum value, we always use the 31 December exchange rate?

Also, when filing our 1040 and 1116 we should not use these rates, but instead the annual ones posted by the IRS at http://www.irs.gov/Individuals/International-Taxpayers/Yearly-Average-Currency-Exchange-Rates

Have I got that right?

Yes you use this December 31 rate for FBARs, regardless of when they reach maximum value.

I expect that for income tax reporting most folks use the IRS unofficial rates for convenience.

I used to use the unofficial sites to be able to get the exchange rate on the day my pension was deposited to my UK bank each month, then total up the converted $'s for the annual sum to report on my 1040.  Members on this site pointed me to the IRS annual average figure which, in my experience, works much more in my favor, so the last couple of years I have used this figure to convert the annual total of £ to $ for tax reporting.