Yes, from what I see, you've done a great job outlining your plan for Form 8938. Here are my observations and suggestions.
- Part 1 (Lines 5, 6, 9): You're correct that all foreign financial accounts, including CDs and regular bank accounts, must be reported with their combined maximum value during the year.
- Part 2 (Lines 10-11): Your understanding of reporting the foreign life insurance policy’s cash surrender value is accurate. Remember to ensure the value reported is in U.S. dollars, converted using the appropriate exchange rate.
- Part 3 (Line 13a): Reporting the total foreign interest earned from CD accounts aligns with the requirements. It's a good idea to double-check this figure against your income records and ensure it matches what's reported elsewhere, like on your tax return (e.g., Schedule B).
- Part 5 (Foreign Bank Accounts): Yes, you'll need to report details for each foreign bank account, including those that were closed during the year. Selecting "Deposit" for CDs and bank accounts is correct. Ensure the information aligns with any corresponding FBAR (FinCEN Form 114) filings if applicable.
- Part 6 (Lines 29-34): Including your foreign life insurance policy here sounds right. Be meticulous in providing all relevant details, such as the name of the financial institution and the account identifier.
- What You Do Not Need to Report: You're correct that tangible assets, like foreign rental properties, are not considered financial assets for Form 8938 reporting purposes. However, ensure that any income derived from the rental property is reported on your tax return, as it is subject to U.S. taxation.
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