FBAR/Form 8938 implications for US heir/beneficiaries of foreign estates
Do I have to file FBAR if I file 8938?
Remember, not all accounts and/or financial assets need to be reflected when determining your filing obligation for each form. A financial asset that is reported on Form 8938 (FATCA) does not necessarily need to be reported on your FBAR form and vice versa.
Who needs to fill out Form 8938?
To get into the nitty gritty of it, if you’re a U.S. taxpayer who lives outside of the U.S. and holds a total combined value of foreign assets worth more than $300,000 at any time during the year (or $200,000 on the last day of the year) you need to report it on Form 8938.
What gets reported on Form 8938?
Use Form 8938 to report your specified foreign financial assets if the total value of all the specified foreign financial assets in which you have an interest is more than the appropriate reporting threshold.
Which taxpayer is not required to file Form 8938 Statement of Specified Foreign financial assets?
If you do not have to file an income tax return for the tax year, you do not need to file Form 8938, even if the value of your specified foreign assets is more than the appropriate reporting threshold.
Does an estate have to file form 8938?
Form 8938, FATCA
Form 8938 is due on the date your income tax return is due, including extensions. It is filed with your income tax return. A beneficiary of a foreign estate must report their beneficial interest in the estate on Form 8938.
Does foreign real estate need to be reported on form 8938?
Foreign real estate is not a specified foreign financial asset required to be reported on Form 8938. For example, a personal residence or a rental property does not have to be reported.
Does foreign real estate need to be reported on FBAR?
So while Americans with foreign real estate don’t have to report it on an FBAR, if they also have a foreign bank account, then they may have to file an FBAR.
Do US citizens have to report foreign real estate?
Yes, you must report foreign properties on your U.S. tax return just like you would report any owned U.S. property. To do that, you first need to know what type of ownership you have because it affects what tax forms you must file.
What is the difference between FBAR and Form 8938?
The FBAR must be filed when a U.S. person has foreign bank accounts with an aggregate high balance of $10,000 at any point during the tax year. Form 8938, by contrast, has different monetary thresholds depending upon the tax filing status and location of the taxpayer.
Does filing an FBAR trigger an audit?
FBAR Audit: U.S. persons are required to file an FBAR form (aka FinCEN Form 114) to report foreign bank accounts. Whether or not the person files the FBAR, they may become subject to an IRS Audit of their foreign accounts..
Do non resident aliens need to file FBAR?
In most cases, nonresident aliens are exempt from FBAR filing requirements. However, exceptions can arise if, for instance, the nonresident elects to be treated as a resident for tax purposes.
What is the maximum account value in FBAR?
$10,000
An FBAR is not required to be filed if the person did not have $10,000 of maximum value or aggregate maximum value in foreign financial accounts at any time during the calendar year.
What accounts have to be reported on FBAR?
Who Must File the FBAR? A United States person that has a financial interest in or signature authority over foreign financial accounts must file an FBAR if the aggregate value of the foreign financial accounts exceeds $10,000 at any time during the calendar year.
Can the IRS see my foreign bank account?
Yes, eventually the IRS will find your foreign bank account. When they do, hopefully your foreign bank accounts with balances over $10,000 have been reported annually to the IRS on a FBAR “foreign bank account report” (Form 114).