In the instructions for the Form TD F 90-22.1 (Rev. 1-2012) and the Form 8938 it says to convert foreign currency by using the Treasury's Financial Management Service rate from the last day of the calendar year.($1.00 CDN = $1.0180: U.S. - www.fms.treas.gov)
But then, in the instructions on the IRS website is says to convert $ by using the applicable yearly average exchange rate in the chart provided (Eg.: $1.00 CDN =1.029 US: //www.irs.gov/businesses/small/internatio ... 89,00.html
If I report amounts on the TD F 90-22.1/8938 using the Treasury's Financial Management Service rate and then report it on the 8891 or on my 1040 using the yearly average exchange rate the amounts will not be the same.
What's a person to do?
Currency conversions - which to use
Moderator: Mark T Serbinski CA CPA
Well, 8891 asks for year-end value. period. That is the value in USD on dec 31.
TD form is supposed to have the highest value, so year-end doesn't matter. they aren't supposed to match.
8983 requires you actually use a specific exchange rate and say which one it is. Do that for this form.
TD form is supposed to have the highest value, so year-end doesn't matter. they aren't supposed to match.
8983 requires you actually use a specific exchange rate and say which one it is. Do that for this form.
After 20 years, I am severely cutting back on responses. Do not ask specifically for my help. There are a few others on this board that can answer most questions. All the best
The year end value is now required and is stated in the instructions of the TD now as well:
Step 2. In the case of non-United States currency, convert the
maximum account value for each account into United States dollars.
Convert foreign currency by using the Treasury's Financial Management
Service rate (this rate may be found at www.fms.treas.gov) from the last
day of the calendar year. (Form TD F 90-22.1 (Rev. 1-2012))
I am concerned with the converted numbers of $ all being different because of the differences required depending on which for you are filling out. Like we don't have enough to figure out! I guess to be safe I should use the year end value across all forms.
Step 2. In the case of non-United States currency, convert the
maximum account value for each account into United States dollars.
Convert foreign currency by using the Treasury's Financial Management
Service rate (this rate may be found at www.fms.treas.gov) from the last
day of the calendar year. (Form TD F 90-22.1 (Rev. 1-2012))
I am concerned with the converted numbers of $ all being different because of the differences required depending on which for you are filling out. Like we don't have enough to figure out! I guess to be safe I should use the year end value across all forms.
I think you are misinterpreting: it says determine the maximum whenever tha occured, but use the year-end exchnge when reporting the figure in USD.
Just folow the instructions. as I said above, they do not care about matching the number up. The forms all have different purposes.
Just folow the instructions. as I said above, they do not care about matching the number up. The forms all have different purposes.
After 20 years, I am severely cutting back on responses. Do not ask specifically for my help. There are a few others on this board that can answer most questions. All the best
The first post in this thread says that according to [url=http://www.fms.treas.gov/intn.html]FMS[/url], $1.00 CDN = $1.0180 USD. I read the FMS page as the opposite. The column title is "Foreign Currency to $1.00". I read it therefore as $1.00 USD = $1.0180 CAD. Am I reading it correctly?
Also, on line 6 of form 8938, should item (2) be the conversion rate for CAD->USD (0.9823) or USD->CAD (1.018)? The instructions use the words "to convert the value of the account into USD", so I'm inclined to think they mean 0.9823. But they specifically say to use the FMS rate, so they might be expecting 1.018. TurboTax allows only a number in this field.
Also, on line 6 of form 8938, should item (2) be the conversion rate for CAD->USD (0.9823) or USD->CAD (1.018)? The instructions use the words "to convert the value of the account into USD", so I'm inclined to think they mean 0.9823. But they specifically say to use the FMS rate, so they might be expecting 1.018. TurboTax allows only a number in this field.