DV Winner & double taxation

[Californiansunset 336]

 

Yes, you have to report that account under FBAR:

 

"A reportable financial account includes a:

Bank account, such as a savings deposit, demand deposit, checking, time deposit (CD), or any other account maintained with a financial institution or other person engaged in the business of banking.

Securities account, securities derivatives account, or other financial instruments account held with a person engaged in the business of buying, selling, holding or trading stock or other securities."

https://www.irs.gov/irm/part4/irm_04-026-016.html

 

In addition there are other tax implications - similar to those you describe

https://www.irs.gov/taxtopics/tc429.html

https://www.irs.gov/businesses/comparison-of-form-8938-and-fbar-requirements

Looks like I have to dig deeper into that subject. I just filed my tax in Germany for last year (I came here in December 2016 but didn't marry until this year) but next year I will have to pay tax for the US too (for the current year 2017). I already read that Germany and the US have some sort of tax agreement to prevent double taxation but I am not versed in this area at all so probably will have to look for a tax advisor. 

I have money that I inherited from my mother that I invested in different ways and from the look of it this might get really complicated reporting this in the U.S. I didn't even think of this until I stumbled upon this thread. 😱

Thank you for your help. Definitely am going to follow this thread. 

[Suss&Camm 2,213]

 

Looks like I have to dig deeper into that subject. I just filed my tax in Germany for last year (I came here in December 2016 but didn't marry until this year) but next year I will have to pay tax for the US too (for the current year 2017). I already read that Germany and the US have some sort of tax agreement to prevent double taxation but I am not versed in this area at all so probably will have to look for a tax advisor. 

I have money that I inherited from my mother that I invested in different ways and from the look of it this might get really complicated reporting this in the U.S. I didn't even think of this until I stumbled upon this thread. 😱

Thank you for your help. Definitely am going to follow this thread. 

Well, in general it's more about the duty to report rather than actually paying taxes - taxes are, also in general, paid on the earnings from the accounts/investments etc. not on the holdings, and normally yes, double taxation won't be an issue - a professional should definitely help you to figure out your specifics though  as mentioned by other posters, sometimes there are deductions that apply (some investments could for instance be deductible depending on the type and so on). The US tax code is big - and it makes it so it's also hard to do anything but give general advice and point ppl in the right direction. Each person's tax situation is unique. 

Edited May 7, 2017 by Suss&Camm

[Wuozopo 4,293]

11 hours ago, Suss&Camm said:

Angry? 

I was clarifying that IRS is the enforcing authority for FBAR since I interpreted the "not IRS" as if FBAR has nothing to do with IRS, which it does. I apologize if I said something to make you feel as if I was angry, that was not my intention.

I believe you also state your accounts on schedule B for the 1040 (correct me if I'm wrong), so the FBAR reporting is separate from the filing but the reporting of accounts I suppose is part of the return in way. That's a later concern for OP however

Schedule B is for reporting interest and dividends because they are income. It's a list of Payer and amount earned.

Interest 

Bank of America $24.98

Charles Schwab $3456.78

Bank of London $22.55

Dividends

Microsoft $765.43

 

It does ask about foreign accounts YES or NO because they want to get you for foreign interest too. And they get in a reminder that you may need to file FBAR. 

 

But the FBAR wants different information for example-- 

 

Bank of London

123 High Street

Cambridge, Cambridgeshire, 123 XYX

United Kingdom

Account number: 4455-667

Highest balance: $25,778.99

And a few more questions about did you earn any interest and if so, did you report that interest to the IRS. But it does not ask how much interest. They want to know where your money is and total you have hidden in your offshore accounts. 

 

And that's a simple bank account. Gets way more complicated with trusts and such.