If I paid foreign taxes and American Depository Receipts on a stock is that stock considered a foreign asset? Stock is NTDOY

[SabrinaD2]

No, NTDOY (Nintendo Co., Ltd.),. American Depositary Receipts (ADRs). Adrs held through a U.S. brokerage are generally not considered foreign financial assets for reporting purposes under the FATCA (Foreign Account Tax Compliance Act). Therefore, you typically do not need to report them on Form 8938

• However, if you paid foreign taxes on dividends from these ADRs, you might be eligible for a foreign tax credit on your U.S. tax return, which helps avoid double taxation on the same income.
• Paying foreign taxes on dividends from ADRs does not change the classification of the stock as a foreign asset. You can claim a foreign tax credit using Form 1116 to offset the foreign taxes paid
• For instructions to enter information for foreign taxes paid in TurboTax click here.

For more details, you can check out these resources:

• Basic questions and answers on Form 8938
• Original Post here or Fidelity article on ADRs here.