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in breaking news most of the world does not use the United States dollar many countries use currency in colors other than green and black more on US tax rules on converting this foreign currency after this [Music] everything for us tax must ultimately be converted to US dollars regardless of the original currency this video covers the US tax rules for getting from a colorful currency to dollars heres what well cover lets start with an overview of some of the basic concepts well cover most of these concepts in a lot more detail most of the rules covered apply for both US tax and US generally accepted accounting principles or GAAP but sometimes the terms used differ foreign currency is property not money under US tax rules rules for acquiring or disposing of it are based on the rules for property see chapter 13 of my book income tax in the USA for more on property transactions an exchange rate is the rate at which one currency is converted to another these rates change unfortunately
