Hey @pk
In terms of the forms to fill, please correct me if I am wrong here -
- DO need to fill FBAR form because at any point of the year my assets crossed $10000. This is separate from my tax return and needs to be filled if total assets including everything ever crossed $10K in the year.
- DO NOT need to file 8938, because my assets never crossed $50K on the last day or $75K on any day in the year.
The sales are to be reported in Schedule D (8949) or in the 8621 form - this is an 'either or' question, or both need to be done?
Regarding the conversion
And lastly, regarding the INR to USD conversion - I understand your method. You say that the conversion should be done on that day's rate (for buying and sale) and then take the difference. But because I have not actually transferred USD to INR or back, should I not just use the average rate from here: https://www.irs.gov/individuals/international-taxpayers/yearly-average-currency-exchange-rates and simply convert the exact INR profit into USD using 2024 exchange rate? Could you please provide a reference for your method - I understand your method, but is there somewhere I can read that it is the correct way?
Regarding the Foreign Tax Credit
Deciding to avoid taking this credit, if it making things too complicated.
