Categories that commonly need review
- Depository and custodial accounts maintained by foreign financial institutions.
- Foreign stock or securities held outside a financial account.
- Interests in foreign corporations, partnerships, and other entities.
- Certain foreign pensions, deferred compensation plans, trusts, estates, and insurance or annuity contracts.
- Financial instruments or contracts with non-U.S. issuers or counterparties.
Real estate requires a distinction
Direct ownership of foreign real estate is generally not itself a specified foreign financial asset for Form 8938. An interest in a foreign entity that owns real estate may be reportable as an entity interest. Income, a mortgage, a foreign account, or another form can create separate U.S. tax questions.
A useful asset record captures
- Legal owner and any joint or beneficial ownership.
- Institution, issuer, counterparty, and country.
- Account or asset type and acquisition or disposition dates.
- Highest value during the year and value at year end.
- Currency and exchange-rate source.
- Related income and where it appears on the federal return.
Do not place account numbers, taxpayer identification numbers, statements, or tax documents in the public inquiry form.