Cryptocurrency Q&A
Should I use the IRS or dot exchange rate?
Should I use the IRS or dot exchange rate?
Nicola
Thu Jan 30 2025
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6
answers
758
I'm trying to decide whether to use the exchange rate provided by the Internal Revenue Service or the market rate for dot exchange. I'm not sure which one would be more beneficial for me. Should I rely on the IRS rate or go with the dot exchange rate?
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6 answers
HanRiverVision
Sat Feb 01 2025
This recommendation stands unless the situation specifically involves the use of a spot rate, which might be required in certain scenarios.
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Daniela
Sat Feb 01 2025
The IRS, when it comes to foreign currency conversions, does not mandate the use of a particular exchange rate.
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EclipseSeeker
Sat Feb 01 2025
Instead, it places the responsibility on taxpayers to select an 'acceptable' exchange rate that is reasonable and defensible under the circumstances.
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GinsengBoostPower
Sat Feb 01 2025
Tax practitioners who are well-versed in the field often advise utilizing the exchange rate provided by the IRS or DOT for reporting foreign income.
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CryptoQueen
Sat Feb 01 2025
This flexibility allows taxpayers to choose a rate that accurately reflects the economic reality of their transactions.
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