Foreign Savings Accounts-------Treasury Form 90-22-1

Lon · Joined: 07 Feb 2008 Posts: 1

My wife and I are residents of California and U.S. citizens. She has
dual citizenship, New Zealand and U.S.A. We have a joint savings
account in New Zealand which is inheritance from her family.
The amount is substantial and over $10,000 USD. I have reported the
2007 interest paid to the account as well as the Non Resident With
Holding Tax payed to the NZ government on Turbo Tax.
My question is--------do I use USD amounts by converting NZD dollars,
or do I use NZD amounts and the IRS does the conversion?

--
>
>
>
>
>
>
>
>
>
>

Archived from group: misc>taxes>moderated

sgallagher · Joined: 25 Aug 2007 Posts: 7

> My wife and I are residents of California and U.S. citizens. She has
> dual citizenship, New Zealand and U.S.A. We have a joint savings
> account in New Zealand which is inheritance from her family.
> The amount is substantial and over $10,000 USD. I have reported the
> 2007 interest paid to the account as well as the Non Resident With
> Holding Tax payed to the NZ government on Turbo Tax.
> My question is--------do I use USD amounts by converting NZD dollars,
> or do I use NZD amounts and the IRS does the conversion?

You should report the income on US tax forms in US dollars. To
convert
the income from NZD to USD you have the option of using an average
exchange rate for 2007, which the IRS can provide to you. Or, you can
use
the exchange rates that were in effect on the individual days that you
received
interest payments into the account, and calculate each payment's
conversion
separately.

--
>
>
>
>
>
>
>
>
>
>

removeps-groups · Joined: 09 Dec 2007 Posts: 98

On Feb 7, 4:18 pm, "sgallag...@rogers.com"
wrote:

> you have the option of using an average
> exchange rate for 2007, which the IRS can provide to you.

What is the website for the average exchange rate?

> Or, you can
> use
> the exchange rates that were in effect on the individual days that you
> received
> interest payments into the account, and calculate each payment's
> conversion
> separately.

For daily exchange rates I use fxhistory>, and "Typical cash rate: +4%".

--
>
>
>
>
>
>
>
>
>
>

removeps-groups · Joined: 09 Dec 2007 Posts: 98

On Feb 11, 11:08 am, "removeps-gro...@yahoo.com" email_removed wrote:
> On Feb 7, 4:18 pm, "sgallag...@rogers.com"

> > you have the option of using an average
> > exchange rate for 2007, which the IRS can provide to you.
>
> What is the website for the average exchange rate?

For anyone who's interested, I found small/article/0,,id=130524,00.html>. At the bottom are several links,
and one of them is the one I mention below.

> For daily exchange rates I use > fxhistory>, and "Typical cash rate: +4%".

But the government website does not look correct because they use the
interbank rate. Consider an example. The treasury department website
at http://fms.treas.gov/intn.html#rates says the exchange rate for US
Dollar to South African rand is

12/31/2007 6.85470000

However, the website oanda.com says the conversion on 12/31 is
6.85470000 only if you use the interbank rate.

But any person who moves money around would probably get the typical
cash rate, which is the interbank rate plus 4%, in which case the
exchange rate would be 7.12888.

Do they publish any guidance on which exchange rate to use?

--
>
>
>
>
>
>
>
>
>
>

L K Williams · Joined: 25 Aug 2007 Posts: 286

On Sun, 24 Feb 2008 19:06:51 EST, "removeps-groups@yahoo.com"
wrote:

>On Feb 11, 11:08 am, "removeps-gro...@yahoo.com" >email_removed wrote:
>> On Feb 7, 4:18 pm, "sgallag...@rogers.com"
>
snip

>
>But any person who moves money around would probably get the typical
>cash rate, which is the interbank rate plus 4%, in which case the
>exchange rate would be 7.12888.
>
>Do they publish any guidance on which exchange rate to use?

Many of the tax returns I prepare for clients involve foreign earnings
which must be translated to dollars. For several years, I have used
the rates published by the Federal Reserve --
www.federalreserve.gov/release/G5a/Current/ which is posted annually.
The US Embassy in Bangkok posts this list as guidance for Americans in
Thailand.

Since this is a rate published for use by government agencies to use
in official accounting documents, it should satisfy your needs.

Lanny K. Williams, CPA
Nawarat, Williams & Co., Ltd.
Income Tax Services for Expatriate Americans

--
>
>
>
>
>
>
>
>
>
>

removeps-groups · Joined: 09 Dec 2007 Posts: 98

On Feb 25, 5:18 am, L K Williams wrote:

> Many of the tax returns I prepare for clients involveforeignearnings
> which must be translated to dollars. For several years, I have used
> the rates published by the Federal Reserve --www.federalreserve.gov/release/G5a/Current/which is posted annually.
> The US Embassy in Bangkok posts this list as guidance for Americans in
> Thailand.

Your URL

http://www.federalreserve.gov/release/G5a/Current/

is not working.

--
>
>
>
>
>
>
>
>
>
>

Bruce E. Cobern · Joined: 25 Aug 2007 Posts: 55

wrote in message @e25g2000prg.googlegroups.com...
> On Feb 25, 5:18 am, L K Williams wrote:
>
>> Many of the tax returns I prepare for clients
>> involveforeignearnings
>> which must be translated to dollars. For several years, I
>> have used
>> the rates published by the Federal
>> Reserve --www.federalreserve.gov/release/G5a/Current/which is
>> posted annually.
>> The US Embassy in Bangkok posts this list as guidance for
>> Americans in
>> Thailand.
>
> Your URL
>
> http://www.federalreserve.gov/release/G5a/Current/
>
> is not working.

He left out an s. Try this one:

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

--
Bruce E. Cobern, CPA
mailto:bec@pipeline.com

--
>
>
>
>
>
>
>
>
>
>

Alan · Joined: 12 Oct 2007 Posts: 93

removeps-groups@yahoo.com wrote:
> On Feb 25, 5:18 am, L K Williams wrote:
>
>> Many of the tax returns I prepare for clients involveforeignearnings
>> which must be translated to dollars. For several years, I have used
>> the rates published by the Federal Reserve --www.federalreserve.gov/release/G5a/Current/which is posted annually.
>> The US Embassy in Bangkok posts this list as guidance for Americans in
>> Thailand.
>
> Your URL
>
> http://www.federalreserve.gov/release/G5a/Current/
>
> is not working.
>
The FRB spot exchange rates for NZ are at:
http://www.federalreserve.gov/releases/h10/hist/dat00_nz.htm

--
>
>
>
>
>
>
>
>
>
>

removeps-groups · Joined: 09 Dec 2007 Posts: 98

On Feb 25, 7:27 pm, Alan wrote:

> The FRB spot exchange rates for NZ are at:http://www.federalreserve.gov/releases/h10/hist/dat00_nz.htm

There is some discrepancy between the various websites quoted in this
thread:

Website = http://www.federalreserve.gov/releases/h10/hist/dat00_nz.txt
Description = VERSION 0 -- NEW ZEALAND -- SPOT EXCHANGE RATE, $US/NZ$
31-Dec-07 0.7678

Website = http://fms.treas.gov/intn.html#rates
Description = Treasury Reporting Rates of Exchange as of December 31,
2007
NEW ZEALAND - DOLLAR 1.3030
Inverse of the above is 0.76745970836531082118188795088258

Website = http://www.oanda.com/convert/fxhistory
Detail = Interbank rate
Answer = 0.77520

Detail = Typical Cash Rate (Interbank rate + 4%)
Answer = 0.8062080

It never makes sense to use the interbank rate as only banks get that
favorable exchange rate.

--
>
>
>
>
>
>
>
>
>
>

Lifetime Savings Accounts for 2005 Anyone know anything new on the LSA's proposed by the Bush slated for '05? Is the LSA on schedule for being created? Any new info is appreciated. Thanks. << << The Charter and the Guid

Information on Health Savings Accounts The recently enacted Medicare Prescription Drug and Modernization Act (PL 108-173) contains provisions that create a new tax incentive for health and retirement security called Health Savings Accounts (HSAs). See Title XII, Section 1201 of the Medicare Ac

Deductibility and new Health Savings Accounts I've been reading about the new Health Savings Accounts online a various sites that are promoting qualified insurance policies and/or HSA trustee services. I've seen seveal comments at these sites along the lines of: "Tax Treatment: Inviduals Individual

Foreign Accounts What form is used to report foreign investment income? I cannot get a clear answer on the IRS website. My wife has accounts in Canada. Are income and cap gains reported on Sched B and Sched D just like US investments? Thank you for your help. << =======

Foreign Bank Accounts I have a question for a tax expert. How do you go about reporting taxes on capital gains made in foreign countries? Also, what is the tax rate on that income? Thank you in advance. << >> << The fore