It depends. Let's break this down.
- Foreign Accounts: These are financial accounts held in foreign financial institutions. Examples include bank accounts, brokerage accounts, mutual funds, and retirement accounts. If you have foreign accounts with an aggregate value exceeding $10,000 at any time during the year, you must file the FBAR (FinCEN Form 114) to report these accounts.
- Foreign Assets: These include a broader range of financial interests beyond just accounts. Foreign assets can encompass foreign stocks, securities, interests in foreign entities, and financial instruments or contracts held for investment. If the total value of your specified foreign financial assets exceeds certain thresholds, you must report them on Form 8938 (Statement of Specified Foreign Financial Assets).
With this in mind, the IRS states that "if you have a financial account maintained by a foreign financial institution and the value of your specified foreign financial assets is greater than the reporting threshold that applies to you, you need to report the account on Form 8938. A foreign account is a specified foreign financial asset even if its contents include, in whole or in part, investment assets issued by a U.S. person. You do not need to separately report the assets of a financial account on Form 8938, whether or not the assets are issued by a U.S. person or non-U.S. person".
Basic questions and answers on Form 8938
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
