Hi,
I file Form 8938 (& FBAR) each year for foreign financial assets which includes a couple of bank deposit accounts.
For 2023 I will also need to file Form 3520 for foreign inheritance consisting of residential real estate and cash. The cash ($80k) was deposited in to one of my existing foreign bank accounts that is reported on 8938.
I'm confused as to what maximum value I should show on 8938 for that account. If I include the cash from 3520 that was deposited in to it the account max would be $110k, without it the account had $30k. I'm trying to work out what to do :
a) Should I indicate 1 Form 3520 in Part IV (line 15) on Form 8938, check box C on Form 3520 and then show a max account value of only $30k? It feels wrong to report a max value that is less than the actual.
b) Or should I not indicate any Form 3520 in Part IV (line 15) on Form 8938, not check box C on Form 3520 and then show the max account value of $110k in 8938 ? I will still file 3520.
c) Or option a) but showing a max value of $110k for the account on Form 8938?
Thanks very much for any help, I'm pulling my hair out trying to finish this.
