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Fixed Assets and UltraTax CS 2023 help is now on Help and Support. We're still moving articles, but you can find most content for the 2023 tax year there. Continue using the Help & How-To Center for tax years 2022 and older.

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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