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HH Happyday
Level 1

Do I need to include or not of the balance of the closed account for the Maximum value of all accounts of the form 8938

In form 8938, in a tax year, the balance of the closed account was $1,000, and the balance was transferred to the newly opened account for $1,000. Then, the maximum value of all deposit accounts should be $1,000 or $2,000?

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Accepted Solutions
ReginaM
Expert Alumni

Do I need to include or not of the balance of the closed account for the Maximum value of all accounts of the form 8938

The maximum value of all your deposit accounts is $1,000 ($0 - Closed Account Balance + $1,000 New Account Balance).

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6 Replies
ReginaM
Expert Alumni

Do I need to include or not of the balance of the closed account for the Maximum value of all accounts of the form 8938

The maximum value of all your deposit accounts is $1,000 ($0 - Closed Account Balance + $1,000 New Account Balance).

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**Mark the post that answers your question by clicking on "Mark as Best Answer"
abhishtu2
Level 1

Do I need to include or not of the balance of the closed account for the Maximum value of all accounts of the form 8938

Thanks for the clarification.

A small variation in my case.

1. I had holdings of Stocks in one institution.

2. During the year, I sold some portion (and am showing it in my Returns, including capital gain/loss etc)

3. I, then, moved the remaining to another institution.

4. The balance in the first is Zero, but I did not actually close the account.

 

Do I have to mention details (name, address etc) of both the institutions with the first one showing nil balance? The Form 8938 does have a column to check if the account was closed. In my case the account was NOT CLOSED but that the entire balance was transferred.

 

Would appreciate your advice. Thanks.

 

MaryK1101
Expert Alumni

Do I need to include or not of the balance of the closed account for the Maximum value of all accounts of the form 8938

You would not have to report the transfer to the new account until you sell the stocks at which time the gain/loss is computed.  Account balance is not needed since there was no gain/loss on the transfer itself.

@abhishtu2

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abhishtu2
Level 1

Do I need to include or not of the balance of the closed account for the Maximum value of all accounts of the form 8938

Thank you for the clarification.

If I understand you correctly, I need to only give the details of the account where I was holding the stocks at the end of 2019. (I continue to hold them).  I need not mention the earlier account that has a Nil balance. Am I correct?

Thank you once again.

KrisD15
Expert Alumni

Do I need to include or not of the balance of the closed account for the Maximum value of all accounts of the form 8938

Correct, it was a total transfer, the balance is irrelevant in this case. 

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abhishtu2
Level 1

Do I need to include or not of the balance of the closed account for the Maximum value of all accounts of the form 8938

Thank you very much.

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