Question about converting funds from England

[bif]

I recently sold a painting for a substantial sum of money. The auction house wants to know if I want them to convert it to USD before transferring the money into our bank account or transfer it in Pounds and have our bank convert it. Is there an advantage one over the other?

[OAITW r.2.0]

1. I think you would check to see which option charges the least for the conversion rate.

The auction house probably deals with these conversions more frequently than your local bank, so you might get a better conversion cost from them.

[Cracklin Charlie]

2. I think this is right.

I got a fairly large British check once. My bank processed it, but it took a few days extra.

If time is a factor, it may be faster to have the auction house convert it. I’m sure it’s something they deal with frequently.

[MineralMan]

4. Depends on which local bank you use.

If it's one of the major banks, the conversion will go quickly. If it's a small bank, S&L or Credit Union, they won't be used to such transactions and the money might not be available quickly.

If the auction house will do a wire transfer of the funds, I'd let them do the conversion. That will speed your access to funds.

[bif]

5. I use Chase.

And the auction house said if they convert the funds, it'll take an extra 3 business days.

[SharonClark]

6. Geez, ask the auction house and your bank what amount would be deposited in your account

if each did the conversion. They're the experts, they know more about current costs than DU readers.

[tanyev]

7. Would the tax reporting be simpler if the bank in England converted it to USD before transfer?

I ask because my husband has investments in Canada that were made before he moved to the U.S. Every year when we do taxes it's a royal pain to figure out what the investments were worth on a specific day and what the exchange rate is, etc., etc. If you have an accountant that takes care of that stuff for you, maybe it doesn't matter.