1040-US: Form 5471 exchange rate

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Question

What exchange rate is used on Form 5471?

Answer

In accordance with the "Reporting exchange rates on Form 5471" paragraph in the Other Reporting Requirements section on Page 4 of the Form 5471 instructions, UltraTax CS uses the "divide-by convention" (e.g. the units of foreign currency that equal one U.S. dollar) to translate amounts entered on the various screens in the 5471 folder to U.S. dollars. UltraTax CS also displays this "divide-by convention" exchange rate on Form 5471, Schedules H and M.

Related topic: Form 5471 - Foreign corporations FAQs (1040)

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