Hello all..
First time posting on this forum and have some questions regarding the new FATCA form.
About me:
I am Canadian/US citizen residing in Canada.
I work for a Canadian company
I have requested and been given an extension to file my 2011 by OCT 15 (no tax payable to united states)
My financial asset threshold ensures I have the pleasure of filling out form 8938!
With respect to the IRS questions/answers regarding foreign real estate (and I know the fatca form has been discussed at length on this forum...but to my comfort level has not been clarified).
Questions:
what does it mean to hold Foreign real estate through a foreign entity?
it appears that a principle residence would have to be listed if Foreign real estate held through a foreign entity!
Would one consider a Canadian Bank Mortgage to be a foreign entity?
The reason i ask as it the IRS information specifically states the personal (principle) residence or rental properties are not considered a financial asset and therefore do not need to be listed on the form.
Then the next paragraph states that If the real estate is held through a foreign entity, such as a corporation, partnership, trust or estate, then the interest in the entity is a specified foreign financial asset that is reported on Form 8938
Would a mortagage through a Canadian Bank be considered a foreign entity?...(or am i definition illiterate)
Thanks...and hope i get a reply from someone before i have to file :)
definition of foreign entity for 8938 reporting
Moderator: Mark T Serbinski CA CPA
Thak you for the reply ikeadea.
Your short answer in 'no' so from that I will assume that if someone owns a house and it is there principle residence, whether it is mortgaged or not, does not have to be written down on the 8938 form.
i will take that advice and not include my home on the form 8938...thanks again for the info.
Your short answer in 'no' so from that I will assume that if someone owns a house and it is there principle residence, whether it is mortgaged or not, does not have to be written down on the 8938 form.
i will take that advice and not include my home on the form 8938...thanks again for the info.
@Taxpoor
I believe you to be on the right track. The IRS instructions specifically state that principle residence need not be listed on the 8938...then it continues to cloud the text (IMO) with exceptions making you re-think the original paragraph.
some might think it a small matter....but then again if you choose the wrong door to walk thru you are looking at a stiff penalty.
I can only tell you what i did....i own my house outright and did not list it on 8938 as per the IRS instructions/faq's regarding the PR on the first paragraph.
I believe you to be on the right track. The IRS instructions specifically state that principle residence need not be listed on the 8938...then it continues to cloud the text (IMO) with exceptions making you re-think the original paragraph.
some might think it a small matter....but then again if you choose the wrong door to walk thru you are looking at a stiff penalty.
I can only tell you what i did....i own my house outright and did not list it on 8938 as per the IRS instructions/faq's regarding the PR on the first paragraph.
If you own your real estate (no matter primary or rental) through such as foreign company, let us say, foreign trust, It will be required to report on 8938. The reason is you own the trust, and the trust is foreign asset so it's total value need to be report on 8938. That's why the house need to be report in that way. But the house itself no need to report, but the value in the trust, which will include your house's value will be reported. hope you could understand what it means.
Your mortgage, forget about it. No need to report on 8938. It is your debt, not your asset. And it is not the foreign entity in the defination.
Your mortgage, forget about it. No need to report on 8938. It is your debt, not your asset. And it is not the foreign entity in the defination.
Again thanks Ikeadia and Marh7 for you help...
For Ikeadia...just to clarify for my own well being.....
If I own my house either outright...or i own my house but have a mortage on said house i DO NOt need to report it on 8938....correct?
If the answer is YES to my above comment...then i think i am beginning to understand what the irs is getting and your previous post, as if someone owns real estate through a trust or under a company name, then the value would have to be reported...
For Ikeadia...just to clarify for my own well being.....
If I own my house either outright...or i own my house but have a mortage on said house i DO NOt need to report it on 8938....correct?
If the answer is YES to my above comment...then i think i am beginning to understand what the irs is getting and your previous post, as if someone owns real estate through a trust or under a company name, then the value would have to be reported...