Hello
Guest

Sponsored Links


Topic: Official exchange rate for 2005 for US taxes  (Read 1232 times)

0 Members and 1 Guest are viewing this topic.

Official exchange rate for 2005 for US taxes
« on: February 27, 2006, 05:00:04 PM »

Does anyone know what the official rate we are supposed to use when doing your taxes for 2005?

Sorry if this has already been posted but I couldn't seem to find anything on it.

Thanks!


  • *
  • Posts: 2623

  • Liked: 102
  • Joined: Dec 2005
Re: Official exchange rate for 2005 for US taxes
« Reply #1 on: February 27, 2006, 07:22:08 PM »
Jules - seek and you shall find!

It appears as if by magic each year here:

http://www.usembassy.org.uk/irs/irsfaq.htm


Re: Official exchange rate for 2005 for US taxes
« Reply #2 on: February 27, 2006, 08:40:27 PM »

Great.....thanks! I remember last year going to the site for days and it took forever for it to be updated!

1.82....always interesting to over inflate the amount of money one is making over here!  ::)


  • *
  • Posts: 386

  • Death and taxes: I'd rather pay tax than be dead.
    • British American Tax
  • Liked: 0
  • Joined: Jul 2005
  • Location: London
Re: Official exchange rate for 2005 for US taxes
« Reply #3 on: February 28, 2006, 11:14:26 AM »
Official exchange rate is either 1.82 or 1.8204, depending on how many digits of accuracy are required.  For most people, 1.82 is fine.  For larger salaries ($500,000 plus), four digits of accuracy is recommended.  For major items (a $100,000 bonus, a sale of a residence, etc.), a spot rate of the day can be found on www.oanda.com.  You need not use the spot rate except for extremely large one-off items. 

IRS Circular 230 Disclosure:  To ensure compliance with requirements imposed by the U.S. Internal Revenue Service, we inform you that any tax advice contained in this communication (including any attachments) was not intended or written to be used, and cannot be used, by any taxpayer for the purpose of (1) avoiding tax-related penalties under the U.S. Internal Revenue Code or (2) promoting, marketing or recommending to another party any tax-related matters addressed herein.
Liz Z i t z o w, EA
British American Tax


  • *
  • Posts: 66

  • Liked: 0
  • Joined: Feb 2005
  • Location: London
Re: Official exchange rate for 2005 for US taxes
« Reply #4 on: March 09, 2006, 12:47:06 AM »
For me, I am planning on using spot rates for each monthly pay as I only started work here in August, so given the exchange rate, it would be advantageous for me to do so.  Then again, I probably won't owe any taxes on my UK earnings (below the limit).

Anyone else using have a company that uses assignee.com?




Sponsored Links