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TaxV2018
New Member

Clarifications on Schedule D, Interest Reporting, 8938 and 3520

I hold a joint foreign bank account in India with a balance less than $10,000 USD. A property sale occurred in 2018 and I am entitled to receive a share from the total income as one of the heirs.

Additionally, my mother’s some certificate of deposits and she has included me as a co-owner. I am also a legal heir for another property we own (individual possession) and that is my mother’s current primary residence in India.

With the inclusion of my share of the income from the property sale to the amount from the CD, the totals should be less than $50,000 USD. This doesn’t include the other property’s value. With everything included, my savings would amount to something less than $100,000 USD.

It is my understanding that neither an 8938 nor a 3520 is required in my situation. Could an expert please confirm?

As an heir with regard to the property sale (2018), I paid Indian taxes in 2019. The income from the property sale is in my mother’s bank account and I haven’t received any income yet.  Should I report it on Schedule D as Capital Gains for 2018 and how should I determine the adjusted tax basis in USD for a point in time almost 5 years ago? I use TurboTax Deluxe and Schedule D requires the premium version of the software. Should I upgrade?

How should I report the interest generated from the foreign joint bank account that I hold? It should be less than $50. I have read some discussion on 1099-INT, should 1099-OID be used as well?

Thanks!

1 Best answer

Accepted Solutions

Clarifications on Schedule D, Interest Reporting, 8938 and 3520

Yes, because the sale occurred in 2018, you should report this income on your current tax return. You will adjust the cost basis to the value at the date of your father's death and convert to USD.

Yes, you will need to upgrade.

You can report the interest as 1099-INT. Again, convert to USD. 

View solution in original post

2 Replies

Clarifications on Schedule D, Interest Reporting, 8938 and 3520

Yes, because the sale occurred in 2018, you should report this income on your current tax return. You will adjust the cost basis to the value at the date of your father's death and convert to USD.

Yes, you will need to upgrade.

You can report the interest as 1099-INT. Again, convert to USD. 

TaxV2018
New Member

Clarifications on Schedule D, Interest Reporting, 8938 and 3520

Thanks a lot again, I greatly appreciate your time and assistance!
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