US Expat Tax – Exchange Rates FAQs
Frequently Asked Questions
If you have a single transaction, such as the sale of a business that occurred on a single day, use the exchange rate for that day. However, if you receive income evenly throughout the tax year, you may translate the foreign currency to U.S. dollars using the yearly average currency exchange rate for the tax year.
If there is more than one exchange rate, use the one that applies to the facts and circumstances on a consistent basis. Refer to the Foreign Currency and Currency Exchange Rates web page.