You'll need to sign in or create an account to connect with an expert.
Form 8938 is the form to use to report your specified foreign financial assets if the total value of all the specified foreign financial assets in which you have an interest is more than the appropriate reporting threshold. It's not the form you use to report income, (capital gains, dividends, interest), from those assets.
You report the sale of securities and any resulting gain or loss using the "Stocks, Mutual Funds, Bonds, Other" interview. The interview will put each trade on the appropriate Form 8949 and summary numbers off the Form(s) 8949 will flow to Schedule D with the resulting gain reported on line 13 of your Form 1040. I assume you will not be getting Form 1099-B reporting those trades to you, so you'd answer "No" to the question asked in this interview as to if you received a Form 1099-B. That will put the trades on the appropriate Form 8949 as "Box C" or "Box F" trades.
You report interest from foreign securities using the "Interest on Form 1099-INT" interview. You'll enter the required information "as if" you received an actual 1099-INT. (I assume you won't be getting 1099-INT's from foreign payers.) Don't worry about entering the information "as if" you are receiving a 1099-INT even though you're not. If you look at Schedule B - https://www.irs.gov/pub/irs-pdf/f1040sb.pdf - you'll see that it lists only the Payer's name and the amount. There's nothing there that says "this interest was reported on a 1099-INT."
In a similar manner, if you get dividends from your foreign holdings you'll use the "Dividends on 1099-DIV" interview to enter those, entering them "as if" you actually got a 1099-DIV.
Tom Young
Still have questions?
Questions are answered within a few hours on average.
Post a Question*Must create login to post
Ask questions and learn more about your taxes and finances.
maria-hakonen
Level 1
nicolepshaw
New Member
janice-butler
New Member
jrsimko
New Member
maria-hakonen
Level 1