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emc011075
emc011075, Tax adviser
Category: Tax
Satisfied Customers: 2300
Experience:  IRS licensed Enrolled Agent and tax instructor
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My employer owns three rental properties in the UK. Two of

Customer Question

My employer owns three rental properties in the UK. Two of the three tenants pay money into her Citibank account in the US in dollars. The third pays GBP into a UK account. When I fill out the Schedule E, how do I account for the third rental in dollars?
Submitted: 1 year ago.
Category: Tax
Expert:  emc011075 replied 1 year ago.

Hi. My name is ***** ***** I will be happy to help you.

You can use any reasonable method to convert the rent payments, for instance currency exchange rate on day money were deposited into the account. Or you can use IRS yearly average currency exchange rate here: https://www.irs.gov/Individuals/International-Taxpayers/Yearly-Average-Currency-Exchange-Rates

Expert:  emc011075 replied 1 year ago.

And the same would apply to expenses. If you have just a few deposits you can look up the actual exchange rate on that particular day but if you had several transactions, the average IRS exchange rate may be easier. Unless the exchange rate fluctuated significantly it will most likely not make much difference.

Any questions?

Customer: replied 1 year ago.
Hi, Eva - so I would look up the exchange rate on the day that the renter paid the rent for each month?
Expert:  emc011075 replied 1 year ago.

Yes, that would be reasonable method or if it is too much work, you can apply the IRS rate to total rent income.

Customer: replied 1 year ago.
Thank you, Eva.
Expert:  emc011075 replied 1 year ago.

You're welcome. Is there anything else I can help you with today?

Expert:  emc011075 replied 1 year ago.

And if this answered your question, please take a moment to rate my response so that I may receive credit for assisting you today. However, if you need clarification, or want to discuss this issue further, let me know. Thank you.