Pop the champagne I just filed my first FBAR

Hey, my very first FBAR is successfully filed. It was for an interest in my Mum's estate that's still in probate, so the gist of it was mostly "ask the solicitor".

Congratulations.

How many pages of "Ask the solicitor" were there?

How many pages of "Ask the solicitor" were there?

Just a couple. Page that asks the value of the account I said don't know as it's in probate and gave the solicitor's name.

Then they asked for joint owners and I entered my brothers' names and when asked for their addresses I entered c/o the solicitors.....Now for 8938

Curiouser and curiouser. What year did you file? Surely it was not for 2014 as the US Treasury has not yet published the official 31st December exchange rates yet; and no other exchange rate is permissible; so a 2014 FBAR would be too early.

The solicitor will know the account balances if asked; so once you have this data from the solicitor and the official exchange rate is published, you can file an amended FBAR with the correct data.

Don't forget to file a Form 3520 with your income tax return for the inheritance.

Isn't it always the way. You think you're drinking champagne and then someone reminds you it could be cold duck.

Curiouser and curiouser. What year did you file? Surely it was not for 2014 as the US Treasury has not yet published the official 31st December exchange rates yet; and no other exchange rate is permissible; so a 2014 FBAR would be too early.

I didn't use an exchange rate. I have a general idea of the value of the estate and know that my interest in it will be well over $10k using a sensible exchange rate, but I don't know the final value, so when given the chance to answer "I don't know" I took that option.

The solicitor will know the account balances if asked; so once you have this data from the solicitor and the official exchange rate is published, you can file an amended FBAR with the correct data.

He has provided estimates, but there are still bills to pay and some shares to sell and the house to settle. The estate was in probate during 2014 and will settle in 2015. So I did not feel comfortable giving a value in 2014 and presented with "I don't know" as an option is seemed the best option. I will give the actual value in 2015 using the appropriate exchange rate.

Don't forget to file a Form 3520 with your income tax return for the inheritance.

I received part of my bequest from the estate in December that was well below $100k so won't file a 3520. I will get the rest of the inheritance in 2015 and if it exceeds $100k I will file the 3250.

If the Treasury wants more information I will gladly provide it if they contact me. I'm probably one of the few US citizens that actually bothered to report an foreign inheritance and probate estate on an FBAR in 2014.

Damn.....it's just hitting me that I am going to have to fill both the FATCA and FBAR this year. 40K Pounds in my wife's account back in the UK. Hope it's easy enough when I do it. No interest on the account. Do you just take the amount in the account at the end of the year? Average? Highest amount? Does it tell you on the paperwork?....which I of course haven't looked at yet.

Damn.....it's just hitting me that I am going to have to fill both the FATCA and FBAR this year. 40K Pounds in my wife's account back in the UK. Hope it's easy enough when I do it. No interest on the account. Do you just take the amount in the account at the end of the year? Average? Highest amount? Does it tell you on the paperwork?....which I of course haven't looked at yet.

You'll only have to file FBAR, and the Treasury publish an exchange rate to use.  Since you are married the threshold for the IRS filing of 8933(?) will not be needed.  TT or whatever tax prep software will guide you through that.

You will have to report the interest earned on that account, create a 1099-INT for it, and the IRS will publish a rate to use (different from the Treasury as the Treasury rate is that on Dec 31st and IRS is an average for the year)

So if you have too much money for FATCA you just have to do FBAR? No interest on the account so that is one less worry.

So if you have too much money for FATCA you just have to do FBAR? No interest on the account so that is one less worry.

Correct.  I have the form number above wrong, but I'm sure you don't have to report it to the IRS as a married couple.  I seem to recall that the sum is $150k at any point during the year.

So, just FBAR is needed.

http://www.irs.gov/Businesses/Corporations/Summary-of-FATCA-Reporting-for-U.S.-Taxpayers

Taxpayers living in the United States. You must file Form 8938 if you must file an income tax return and:
You are unmarried and 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
You are married filing a joint income tax return and 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.
You are married filing separate income tax returns and 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. For purposes of calculating the value of your specified foreign financial assets in applying this threshold, include one-half the value of any specified foreign financial asset jointly owned with your spouse. However, report the entire value on Form 8938 if you are required to file Form 8938.

Looks like this year (2015) I will get hit harder. Almost sold a bunch of Vanguard yesterday (should have) and if the markets slide up a bit next week I will. At that point my wife's account will have about $170K in it......and then hopefully later this spring if we sell the house + move we would dump another $320K or so into it. I need to do some research on these things....been putting it off.

Just got around to checking on IRS 8938....I would need over $400K to start worrying. This year I guess I will start worrying. I am assuming the foreign assets will include all bank accounts plus property? Might be leaving most of this stuff in my wife's name anyway. Hopefully after this current year a large part of these assets will be in her name. After she drops the green card this year (however hard that is) this will be the last year that I will be filing married joint.

Just got around to checking on IRS 8938....I would need over $400K to start worrying. This year I guess I will start worrying. I am assuming the foreign assets will include all bank accounts plus property? Might be leaving most of this stuff in my wife's name anyway. Hopefully after this current year a large part of these assets will be in her name. After she drops the green card this year (however hard that is) this will be the last year that I will be filing married joint.

I've never had to file 8938 so I can't speak to that but FBAR reporting is for Foreign Bank Accounts Reporting and other financial accounts and trusts in which you have signature authority so I don't believe you have to list the value of property you own when you file FBAR (through the Fincen site).  The first 5 years here in the USA we still owned and rented out a house in England.  Company accountants filed our tax returns and while we reported the rental house income in the tax return, when we did FBAR through the old Treasury form (TDF-90?) we reported the bank accounts but not the property.

I've never had to file 8938 so I can't speak to that but FBAR reporting is for Foreign Bank Accounts Reporting and other financial accounts and trusts in which you have signature authority

When you say "in which you have signature authority" .....I would assume that since I am reporting married/jointly for 2014+2015 I would still have to include my wife's bank account? It's only in her name though. It's not until 2016 that I hope to fall back to filing separately.

As far as the 8938 goes......guess we'll have to see. If we get everything sold that we hope to we would be over the $400k minimum limit at the end of tax year, but under the max of $600k at some point during the year. We still plan on renting for at least 6 months if not longer to see if that area we are planning on is as good as we hope. That would put us a little over $400k at the end of 2015....damn....another form to fill out. But.....better that than to foolishly buy a house too soon (done that a couple of times) just to avoid filling out a form. We just want the money sitting there in case a house comes up that is perfect.