How do I report closed foreign bank account on FBAR?

[PB141]

I closed one foreign bank account in February and moved the funds (approx $26k) to another foreign bank account, which is a new account. The maximum funds I had at any point in the year was $26k. However, if I report both bank accounts on FBAR, that will make it more than $50k requiring me to file form 8938 even though I did not have $50k at any time during the year.
Please advise how to correctly report this.
Thank you!

[SusanY1 · Accepted solution]

You do want to report both accounts on your FBAR, since the value was in each of them for a time.  However, for purposes of determining whether or not you need to file 8938 those amounts aren't added together.  

FBAR requires you to report the highest value in every account you had open at all during the year if at any time you meet that filing threshold ($10,000 USD equivalent).  When money is moved from checking to savings or between banks it can make it appear as if the individual has more money than they actually have, but FINCen is aware of this nuance. 

For 8938, the threshold applies only if you had more than $50,000 of total assets on the last day of the year or $75,000 on any day of the year (for single filers living in the US).   However, this is using your total value of real assets, and doesn't require combining values when you move funds from one account to another.  

The full list of reporting thresholds by filer type can be found HERE.