I have a brokerage account in India that hold various stocks from Indian stock market and the value exceeds 100K. I understand that I need to report this account in Form 8938.
Questions
1) Is this considered a financial account or financial asset? I think it is financial account.
2) Assuming this is considered financial account, I can see ONLY two choices in TurboTax, Deposit account or Custodial account.
Which one should I select?
Uploaded screenshot
Yes, it is a financial account. It would be considered a custodial account for 8938 reporting purposes.
@GanaVK , having read through your post, and reply by my colleague @DaveF1006 ( and generally agreeing with ) let me just add the following ( nuances)
For purposes of FATCA reporting , the stocks / bonds that you hold are indeed financial assets to be included in FATCA threshold determination
Additionally I would include any cash held in custody for in vestment / distribution is a financial custodial account and must be counted for purposes of FATCA regs.
Also note that custodial account cash may be counted towards FBAR reporting ( because it is liquid)
Does this help or confuse the situation?
Is there more one can do for you ?