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Type 8938 – is overseas mortgage a ” overseas monetary asset”?

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    New Member

     

    Jan 29, 2012, 05:07 PM

    Type 8938 – is overseas mortgage a ” overseas monetary asset”?

    HI,

    I’m very unclear on this new kind.
    I do know I’ve to fill out the FBAR and have overseas financial institution accounts that quantity to about $20k in whole.

    I even have a overseas property that I hire out full time and have a overseas mortgage on the property to which the funds are made in that nation. The whole lot concerning it occurs in that nation. Nothing comes from the US.

    I’m married and submitting collectively so I imagine I’ve to have go over $100k in “overseas monetary property” with a view to be required to file kind 8938 – so it seems to be like I haven’t got to file it with the $20k in my financial institution accounts.

    I perceive the property itself is a tangible asset and never a overseas monetary asset.
    Okay. Then what in regards to the mortgage?

    Can somebody please assist me perceive what I have to do?
    Is the overseas mortgage thought-about a “overseas monetary asset”? Do I would like to finish this kind?

    Thanks

    Tax Skilled

     

    Jan 29, 2012, 08:04 PM

    The mortgage is a legal responsibility quite than an asset. Since it’s not an asset, it can’t be a overseas monetary asset.

    Nevertheless, it is best to check out Type 1042 and W-8BEN.

    New Member

     

    Jan 29, 2012, 08:11 PM

    Thanks for the clarification.
    So I take it I subsequently don’t have to submit Type 8938.

    Why take a look at Type 1042?
    Why do I have to file that?

    It’s a overseas mortgage and overseas financial institution. It’s a double taxation treaty nation which has a 0% settlement. I’ve a W-8BEN kind from them too.

    New Member

     

    Jan 29, 2012, 08:23 PM

    PS. I’m not claiming mortgage curiosity deduction – simply as expense on schedule E

    Senior Tax Skilled

     

    Jan 30, 2012, 02:11 PM

    Truly, the Type 8938 cutoff is $50,000, however, as IntlTax famous, your mortgage is a legal responsibility, and the home itself is a capital asset, not a monetary asset.

    Based mostly on these info, you’ve got NO requirement to file Type 8938.

    New Member

     

    Jan 30, 2012, 02:21 PM

    Thanks very a lot ATE on your enter.

    One factor – only for others data. The lower off as I learn it’s in reality $100,000 – married and submitting collectively
    That is from IRS web site: http://www.irs.gov/directions/i8938/ch01.html

    Married taxpayers submitting a joint revenue tax return and dwelling in the US. If you’re married and also you and your partner file a joint revenue tax return and don’t reside overseas, you fulfill the reporting threshold provided that the entire worth of your specified overseas monetary property is greater than $100,000 on the final day of the tax yr or greater than $150,000 at any time throughout the tax yr.

    Married taxpayers submitting separate revenue tax returns and dwelling in the US. If you’re married, file a separate revenue tax return out of your partner, and don’t reside overseas, you fulfill the reporting threshold provided that the entire worth of your specified overseas monetary property is greater than $50,000 on the final day of the tax yr or greater than $75,000 at any time throughout the tax yr.

    Senior Tax Skilled

     

    Jan 30, 2012, 02:43 PM

    Fascinating! This can be a NEW requirement this yr, and I used to be advised $50,000. Nevertheless, your supply of knowledge CANNOT be impreached, so I need to agree.



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