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I have a question regarding reporting expenses made in a…

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Hi there, I have...

Hi there, I have a question regarding reporting expenses made in a foreign currency for my company. We do business in China, and often convert money into local RMB (China's currency) to pay vendors or purchase parts. Do we simply report these as expenses?

Accountant's Assistant: The Accountant will know how to help. Is there anything else the Accountant should be aware of?

We use a local bank account to hold the money we convert, then pay locally out of that bank account. It's a personal bank account not a formal business account, but all the transactions are accounted for in our records. We're a small startup doing some consumer goods.

Submitted: 1 month ago.Category: Tax
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3/27/2018
Tax Professional: Barbara, Enrolled Agent replied 1 month ago
Barbara
Barbara, Enrolled Agent
Category: Tax
Satisfied Customers: 5,820
Experience: 20+ years of experience in tax preparation; 30+ years of experience as a real estate/corporate paralegal.
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Welcome to Just Answer. My name is ***** ***** I will be happy to assist you.

The currency exchange fees you incur during the normal operation of your business are business expenses you can deduct.

All should be reported in US dollars.

Please let me know if I can assist you further.

Thank you and best regards,

Barb

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Tax Professional: Barbara, Enrolled Agent replied 30 days ago

Just following up with you to see if you have any other questions. If so, please let me know so I can continue to assist you.

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Barbara
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Category: Tax
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