0

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?

1
  • What's your question? Aug 28 '15 at 0:20
1

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

-1

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

2
  • OP did not mention income at all.
    – Eric
    Sep 27 '15 at 17:16
  • @Eric so what's this: "and perhaps make the interest and dividends I report look understated"?
    – littleadv
    Sep 27 '15 at 22:35

Your Answer

By clicking “Post Your Answer”, you agree to our terms of service, privacy policy and cookie policy

Not the answer you're looking for? Browse other questions tagged or ask your own question.