Query on FX Issue on Rental Income

[jonno23]

Sorry for yet another rental income query, but I've searched and been unable to find any info.
Situation is a friend was left a house in Northern Ireland last year, due to the sudden death of family member. Friend is resident in South, and paid the necessary inheritance tax down here. The FX rate used when completing the inheritance tax return was the rate at the valuation date.
The house has since been rented out, as the market for selling the house was not great.
Friend now wants to file their 2007 tax return (even though it's not due until Oct 08) so they know what has to be paid.
The query is, how is the Euro amount calculated on the monthly GBP rent? Is it calculated on the date the rent is paid each month, or on the exchange rate at 31 December 2007?
Cannot seem to find any info on revenue.ie nor here, so any input appreciated.

Jonno

 

[Domo]

You can use whatever you wish as long as you continue using the same method year on year
So you have the following options

1) Use actual daily exchange rate
2) Use monthly/yearly average
3) Use Revenue averages (I'm not quite sure where these are obtained from)

 

[jonno23]

Domo - many thanks for the info, greatly appreciate it. I will advise him of his options. I believe when he was dealing the C.A.T. department in Revenue when trying to work out his inheritance tax, they were happy with him using the exchange rates available from the Central Bank.
Many thanks again.

 

[Domo]

I tend to use the rates on:

http://www.oanda.com/convert/fxhistory

I find this very easy to use.

 

[webtax]

You can also get the average exchange rates from the central bank:
www.centralbank.ie

 

[jonno23]

That's where they got the rate used for CAT, webtax. Thanks to both of you for taking the time to advise.
Jonno

 

[ccraig]

those arent market rates. If i were you id take the rate at bank of ireland on the day for that equivalent amount of rent. You'll find it 3-4% worse, actually the net result wont be dramatically different but every penny counts

 

[webtax]

those arent market rates. If i were you id take the rate at bank of ireland on the day for that equivalent amount of rent. You'll find it 3-4% worse, actually the net result wont be dramatically different but every penny counts

They are the official rates & are used by the Revenue Commissioners.
Are you talking about using the BofI offer rates and not the averages?