3520, 8938, and FBar

[duckie4]

I received a financial gift  (over 100k) from a Canadian family member and I hope that I understand the process correctly.

1) Does the tax treaty with Canada allow us to consider large gifts from Canadians as tax free? 

2) I complete information about the gift via 3520?

3) I complete 8938 (first part and part IV indicating number of forms)?

4) I complete the FBar?

5) The funds are currently in a foreign account. If I move the money to the US, will I need to complete any of the forms (3520, 3938, FBar) again in the future?

6) Are all of these forms available on Turbotax?

Thank you!

[duckie4]

I have one follow up question about the FBar. My spouse and I are on the foreign account jointly. I am also one one other foreign account jointly with someone else (Canadian Citizen). He is not on any other foreign accounts. Do my spouse and I complete one FBar together or each complete it separately?

[DaveF1006 · Accepted solution]

According to FinCen regulations, The spouse of an individual who files an FBAR is not required to file a separate FBAR if the following conditions are met: 

1. All the financial accounts that the non-filing spouse is required to report are jointly owned with the filing spouse; 
2. The filing spouse reports the jointly owned accounts on a timely filed FBAR electronically signed; and 
3. The filers have completed and signed Form 114a, “Record of Authorization to Electronically File FBAR’s”
4. If the above conditions are not met, both spouses are required to file separate FBARs, and each spouse must report the entire value of the jointly owned accounts. See instructions for specific items, Part III, Items 25-33.

For you and your Canadian Partner, each of you will need to file an FBAR separately each reporting the full value of the jointly owned accounts.

@duckie4