Do I need to report foreign bank account(s) on borrowed money?

Hello,

I opened a bank account in China with $30K USD equivalent of RMB (the chinese currency), which were borrowed from my brother to cover travel expenses of my family when we go back to visit. Since it's a loan between family members, the loan note with my brother only defined the loan amount, borrower, lender, due date and total interest, which means I don't need to pay him back in installments, but a lump sum including interests within 10 years. Since it's borrowed money, I don't think need to file FinCEN 114 and 8938. Any insights and recommendations will be greatly appreciated!

Best,

David

15867

Level 15

Oct 23, 2024 3:35:09 PM

If you control a foreign account with more than $10,000 US equivalent, for even 1 day in 2024, it must be reported, even if the funds were borrowed or you were holding the money for someone else. What matters is that you owned/controlled a foreign account. But its just a report, no tax is owed.

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Do I need to report foreign bank account(s) on borrowed money?