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FBAR and Form 8938 require the reporting of the maximum balance/value of a foreign account during a tax year.

If, say, I sell $100,000 worth of stock from my (foreign) securities account and desposit the proceeds to my (foreign) checking account, then it seems I would have to list this $100,000 value twice. Isn’t that double counting? The overall totals, particularly Form 8938 Part I Line 2, would give a false picture of my total financial assets, and perhaps make the interest and dividends I report look understated.

Am I truly supposed to list each account where this identical batch of money was held?

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  • What's your question? Aug 28, 2015 at 0:20

2 Answers 2

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Yes, you effectively need to "double count" when shifting balances between foreign accounts.

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The requirement is to report the highest balance on the account, it has nothing to do with your income.

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  • OP did not mention income at all.
    – Eric
    Sep 27, 2015 at 17:16
  • @Eric so what's this: "and perhaps make the interest and dividends I report look understated"?
    – littleadv
    Sep 27, 2015 at 22:35

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