Form 8938 - Questions

[Mtriligy 0]

Hello,

After conducting extensive research, I believe I have a solid understanding of what I need to do for my Form 8938. If anyone can help me get to the right direction, I would truly appreciate it. Please note that this is a high-level overview of my plan. If I’m making any mistakes or missing something important, I’d appreciate any corrections or guidance.

Information to Input on Form 8938:

• Part 1 (Lines 5, 6, 9): Since we have both CDs and regular bank accounts, we need to report the total number of accounts and their combined maximum value during the year.
   

• Part 2 (Lines 10-11): 

  • We need to enter "1" in Line 10, as we have one foreign life insurance policy with a cash surrender value.

  • Line 11 will reflect its maximum value during the year.
     

• Part 3 (Line 13a): The only foreign income we earned was interest from our CD accounts. I believe we should report only the total interest earned from these accounts here.
   

• Part 4: (Skip) This section does not apply to our situation.
   

• Part 5: (Foreign Bank Accounts)

  • We need to report both open and closed foreign bank accounts.

  • For account type, we should select "Deposit" for all CDs and regular bank accounts.

  • We then provide the required details (institution name, account numbers, maximum values, etc.).
     

• Part 6 (Lines 29-34):

  • This section is for foreign financial assets that are not held in financial accounts.

  • Since we have a foreign life insurance policy with a cash surrender value, we need to report it here with all relevant details.
     

What We Do Not Need to Report:

• We own a rental property abroad, but from my understanding, this is not considered a financial asset for Form 8938 since it is personal property that we lease out. Therefore, it does not need to be reported on this form.