“Does anyone know if you have a foreign bank account in euros, do you have to pay US taxes when the exchange rate changes (assuming you are a US citizen)?”
July 24 at 8:48 am
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Bjorn Tipling liked this
Interesting question, would like to hear the answer also - Bjorn Tipling
See "section 988" (http://www4.law.cornell.edu/us...) and its many interpreters. I *think* this means you owe tax whenever there's a transaction in foreign currency, and the gains or losses count as ordinary income. I don't think you owe tax if the rate changes and you don't buy or sell. - ⓞnor
you have to check also whether there is a bilateral agreement between bank's country and USA on avoiding double taxation - if there is such agreement than it rules taxation, and usually you end up paying those taxes in country of bank. Tho I am not sure whether that tax is better one, granted EUR general taxation climate. - silpol