Purchasing Foreign stocks

[Phoenix3]

I'm purchasing the allowed limited quantity of foreign stocks of the company I work for and they match the same quantity at the year end. How to report them with my tax filing?

I have not plan to sell them at the moment and the stock does not generate dividend or yield...

The brokerage firm is UK based and they do not provide any US tax documents.

Similar question, do I need to report them on the 8938 and on the FenCin? If yes, under which category?

[pk]

@Phoenix3  , assuming that you are  US citizen/Resident/Resident for tax purposes, ownership of foreign stock is not a taxable event ( it  just like  if you bought  stocks in the USA  ) -- there is nothing to report.

 (a) You will have to report any earnings  either as dividend  or from the sale of the stocks ( when  and if ) --- you will need to retain the cost of the stocks when you buy these because  you will need that to compute  the  gain ( Capital gain or short-term gain )

(b) Depending on the total amount of monies invested, there may be a requirement to report  this on FATCA  ( Financial Asset  ) form 8938 ( with your return ), but the threshold for that depends on your filing status , where  your tax home is  and ranges from around $90,000  to more than $140,000 ( I think )

Does this cover your query ?

[pk]

@Phoenix3  , assuming that you are  US citizen/Resident/Resident for tax purposes, ownership of foreign stock is not a taxable event ( it  just like  if you bought  stocks in the USA  ) -- there is nothing to report.

 (a) You will have to report any earnings  either as dividend  or from the sale of the stocks ( when  and if ) --- you will need to retain the cost of the stocks when you buy these because  you will need that to compute  the  gain ( Capital gain or short-term gain )

(b) Depending on the total amount of monies invested, there may be a requirement to report  this on FATCA  ( Financial Asset  ) form 8938 ( with your return ), but the threshold for that depends on your filing status , where  your tax home is  and ranges from around $90,000  to more than $140,000 ( I think )

The matching part  tax handling depends on if these are  are available to you right away ( vested ) and the limitations  that is put on these for disposal etc.   Need to tell me more  as you may have to report the value of these .

Does this cover your query ?

[Phoenix3]

Thanks for your reply. Let us consider the matching are immediately vested. Do I need to pay tax on them?

How to report the foreign stocks on the 8938? Similar to a deposit account?

[pk]

(a) matching vested stocks  can be viewed as stocks with  ZERO basis and thus no reporting required  ( treating these like  403(a/b)   tax advantaged savings  targeted for retirement  OR more commonly looked as income , like  "other " income -- taxed  at FMV but not FICA taxed ( because  employer does not  match the  50% FICA contribution and because this is not  guaranteed   as part of wages.

(b)  Yes  you report it like a deposit account  using  FMV on the last day of the year or the highest  in the year

BTW --- are you working in the UK  or are you  stationed here in the USA ?