Filing Foreign Assets IRS Forms

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scot
Posts: 6
Joined: Tue Jun 23, 2015 4:46 pm

Filing Foreign Assets IRS Forms

Post by scot »

We are US citizens and recently purchased a vacation condo in Montreal. February of this year we held about $358K CAD ($254K USD at the time) in a Canadian bank for several weeks. Once the condo purchase was complete that balance went down to about $13K CAD - which is where it stands today. I assume we have to file a FBAR. Do we also need to file Form 8938 with the IRS?
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SM
Posts: 94
Joined: Fri Mar 20, 2015 3:43 pm

Post by SM »

Yes both forms are required. Unless...

Form 8938 can be avoided if you are living abroad, and meet certain requirements (live outside of the US for 330 days or more etc), and the value is less than $300K at any time in the year.

So if you meet the requirements of living abroad, because the value is $254K you should be able to avoid filing this form.

https://www.irs.gov/Businesses/Corporat ... ial-Assets
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