Thank You @pk.
I'm an Indian citizen working in US. So will fall under resident status for tax filing based on the substantial presence test.
1) Yes. I will be reporting it to the bank or authorized electronic money institution like transferwise. Also, I believe SAR is the responsibility of the institution and no action is needed from my end. Am I right?
2) "sometime during the tax year" - Is there a definite period that one should be aware of or even if it resided on my account for a week (before I send it to the seller of property in India). Or would you recommend sending it to the seller directly rather than having it in my account to avoid filing FBAR. I'm asking as I'm not sure of the implications of FBAR.
3) I would literally be sending the money required to buy the property + minimum balance for the account. And the property is for my parents and so I will not be generating any income through it. Should this still require 8938 Filing?
As per https://www.irs.gov/businesses/comparison-of-form-8938-and-fbar-requirements,
- "Foreign real estate held directly" does not require 8938 filing.
- "Financial (deposit and custodial) accounts held at foreign financial institutions" is only needed if the "Total value of assets was more than $100,000 on the last day of the tax year, or more than $150,000 at any time during the year" which will not be my case for my category of filing.
Does that sound right?
4) Not applicable to me as my parents are gonna live there and I will not be earning any income out of it.
5) This is also not applicable for me as I'm sending to my own account from my earnings in US. So, neither I'm receiving gifts nor giving gifts to any one.
So, if my above understandings are correct, FBAR would be my only additional responsibility and that should be taken care separately by filing through BSA e-file system which I believe will not be part of turbo tax.
Kindly. validate my understanding and Thank You so much for your time.
Regards,
Sulz
