For me the posted answer does not answer the question asked which is the same as my question.
The question on Line 23 of form 8938 is "Maximum value of account during tax year." The question is not what is the current value at the end of the tax year.
If the account had $10,000 during the tax year before it was closed, wouldn't the "Maximum value of account during tax year" be $10,000?
Now if the $10,000 is transferred to another account then the maximum value of the new account during tax year would be $10,000.
Part I line 6 of form 8938 states, "Maximum value of all deposit accounts" which should include the closed account because it says "all deposit accounts" not just open accounts. Therefore the maximum value would be $20,000, wouldn't it?
To me this is an oversight in the 8938 form and hopefully the IRS software is smart enough to look at the Part V section and see line 22 box b is checked and deduct the closed account value from the maximum value reported in Part I line 6, "Maximum value of all deposit accounts." This would be equivalent to putting a $0 for the closed account value but not strictly truthful as the maximum value in the tax year for the closed account was actually $10,000.
Any clarification on this confusing question would be much appreciated.
