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

[HH Happyday]

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?

[ReginaM · Accepted solution]

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

[abhishtu2]

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.

[MaryK4]

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

[abhishtu2]

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]

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

[abhishtu2]

Thank you very much.