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Level 1
posted Feb 3, 2025 11:40:16 PM

How do I convert Rental Income/Property Value from Foreign Currency to USD in Turbo Tax?

Ok this question may be stupid as I've never filed a US tax return before, so apologies in advance.

 

I moved to the US in early 2024 and my only source of income is from rental income from my property back in the UK, that I converted from personal to rental use in 2024. All of the rental income and expenses, property purchase price (from over 10 years ago) and fair market price are all in GBP (rental income also stored in UK bank account), but Turbo Tax only gives you the option to enter USD values. This is despite indicating that the property is outside of the US in Turbo Tax already.

 

Do I just manually convert from GBP to USD using the current foreign exchange rate? 

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1 Best answer
Expert Alumni
Feb 4, 2025 11:59:36 AM

It depends. As a best practice, the IRS suggests you use the yearly average exchange rate. Here you would divide the foreign currency amount by .783 to convert to US dollars. Please refer to the link I listed below and look under Great Britain.

 

Yearly average currency exchange rates

 

1 Replies
Expert Alumni
Feb 4, 2025 11:59:36 AM

It depends. As a best practice, the IRS suggests you use the yearly average exchange rate. Here you would divide the foreign currency amount by .783 to convert to US dollars. Please refer to the link I listed below and look under Great Britain.

 

Yearly average currency exchange rates