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How report maximum value in a foreign bank account, if the same money was in two different accounts at two different times

I have two foreign accounts to be reported on Form 8938 and FBAR.

 

Account 1: On May 1, 2019 the maximum value in this account was $150,000.  On May 13, 2019 this $150,000 was transferred to Account 2. The next day, May 14, 2019 the $150,000 was wired from Account 2 to me in the USA.

 

Do I need to report the maximum balance in Account 1 as $150,000, AND ALSO report the maximum balance in Account 2 as $150,000?  

 

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KurtL1
Expert Alumni

How report maximum value in a foreign bank account, if the same money was in two different accounts at two different times

Yes, you need to report both accounts. Even though the funds only remained in Account 2 for a short time. the requirements do not specify the length of time required for the funds to be in the account.

 

Per IRS FBAR Reference Guide A United States person must file an FBAR if that person has a financial interest in or signature authority over any financial account(s) outside of the United States and the aggregate maximum value of the account(s) exceeds $10,000 at any time during the calendar year.

 

Per Instructions for Form 8938 if the total value of your specified foreign financial assets is more than $100,000 on the last day of the tax year or more than $150,000 at any time during the tax year, if you are married.

 

If the total value of your specified foreign financial assets is more than $50,000 on the last day of the tax year or more than $75,000 at any time during the tax year, if you are single.

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KurtL1
Expert Alumni

How report maximum value in a foreign bank account, if the same money was in two different accounts at two different times

You are welcome.

You are correct the Maximum Value on all Accounts should be $300,000.

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3 Replies
KurtL1
Expert Alumni

How report maximum value in a foreign bank account, if the same money was in two different accounts at two different times

Yes, you need to report both accounts. Even though the funds only remained in Account 2 for a short time. the requirements do not specify the length of time required for the funds to be in the account.

 

Per IRS FBAR Reference Guide A United States person must file an FBAR if that person has a financial interest in or signature authority over any financial account(s) outside of the United States and the aggregate maximum value of the account(s) exceeds $10,000 at any time during the calendar year.

 

Per Instructions for Form 8938 if the total value of your specified foreign financial assets is more than $100,000 on the last day of the tax year or more than $150,000 at any time during the tax year, if you are married.

 

If the total value of your specified foreign financial assets is more than $50,000 on the last day of the tax year or more than $75,000 at any time during the tax year, if you are single.

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"

How report maximum value in a foreign bank account, if the same money was in two different accounts at two different times

Thank you for your reply. I do complete a Form 8938. On Part 1 of Form 8938 Point # 2 - 'Maximum Value of all Deposit accounts', I should enter $300,000 and not $150,000? The total amount of money I owned was $150,000.

 

KurtL1
Expert Alumni

How report maximum value in a foreign bank account, if the same money was in two different accounts at two different times

You are welcome.

You are correct the Maximum Value on all Accounts should be $300,000.

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"

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