form8938

[ponsuke]

Hi, I have a question about how to report capital losses on Form 8938 (Part III) in TurboTax.

On my Schedule D, I have a total realized capital loss of -45,086, but on Form 1040, only -3,000 is deducted due to the annual limitation.

For Form 8938 (FATCA reporting), should I enter the full realized loss -45,086 as shown on Schedule D line 15, or only the deductible amount -3,000 from Form 1040?

I understand Form 8938 is an information-reporting form under FATCA rather than a tax-calculation form, but I’d like to confirm what TurboTax expects in this field.

Thank you!

[DaveF1006]

You will enter the full realized loss of $45,086 rather than the $3,000 limitation limit shown on your Form 1040. The IRS wants to see the actual loss amount you recognized from the foreign asset. This amount will show on Schedule D, line 15 and this the amount that the IRS is looking for. It's not concerned about the $3000 loss limitation amount reported on your tax return.

Be sure to enter this amount with a minus in front to indicate this was a loss.