![]() When valuing currency of a foreign country that uses multiple exchange rates, use the rate that applies to your specific facts and circumstances. Generally, it accepts any posted exchange rate that is used consistently. The Internal Revenue Service has no official exchange rate. See section 988 of the Internal Revenue Code and the regulations thereunder. dollar, make all income determinations in the QBU's functional currency, and where appropriate, translate such income or loss at the appropriate exchange rate.Ī taxpayer may also need to recognize foreign currency gain or loss on certain foreign currency transactions. If you have a QBU with a functional currency that is not the U.S. The only exception relates to some qualified business units (QBUs), which are generally allowed to use the currency of a foreign country. ![]() In general, use the exchange rate prevailing (i.e., the spot rate) when you receive, pay or accrue the item. ![]() dollars if you receive income or pay expenses in a foreign currency. Therefore, you must translate foreign currency into U.S. You must express the amounts you report on your U.S.
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