Should I transfer inheritance in Australian dollars to the US, where I live as tax resident? The exchange rate is currently so low, but is this better to lose money on the exchange rate rather than risk complicated foreign passive investments declarations in the US? Thanks.

  • Do you have particular reason to believe that the exchange rate will move in your favor in the future? You seem to think that AUD is undervalued so you would "lose money" if you echange it to your own currency now. – hmakholm left over Monica Nov 17 '18 at 20:24
  • Hi Henning, there is speculation of up to a possible 14% rise in the next year or so. I guess the question is more do I keep passive investments in Australia while being a tax resident in the US. Or is it better to transfer the inheritance to the US to avoid complicated international tax returns. – K.Sch Nov 17 '18 at 21:02
  • If that 14% rise in the next year was certain, everybody would be buying up AUD to get in on it, and as a result its price would be 14% higher now. The reason why anyone is willing to sell AUD at the current price (and someone is, or that wouldn't be the current price) is that they don't think it would be better to hold om to them and sell in the future instead. – hmakholm left over Monica Nov 17 '18 at 21:27
  • @HenningMakholm - if that was the case then there would be no market. The market is made up of many participants, some small and some large, speculation of the market drives shorter term price movements, fundamentals usually drive longer term movements. Just because speculation may be saying that the price is likely to move up or down 14% in a year does not mean that that would be the price now. Speculation car drive prices in a certain direction, it does not mean the prices would be that at that moment. Usually this type of speculation is based on the fundamentals changing first. – Victor Nov 18 '18 at 22:21
  • @K.Sch - that is sometimes the problem with asking a question like this here, you sometimes get advice from people who don't really know what they think they know, but you take that advice as accurate, without knowing anything about the person giving it. I think you should get your advice from an accountant or financial adviser not from a question and answer website. – Victor Nov 18 '18 at 22:26

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