My first post.
Here is my question. I have filed my FBARs but now wondering if I filed properly.
The information stipulates the highest account balance for the calender year.
For this example we will say that the GIC rate of return is 0%.
Now...in my example if savings account A has 50k in it as the highest balance and you have a GIC that has 100k, then FBAR tabulation would be simple...Account A @ 50k and GIC @ 100k.
When the GIC matures, it is matured inside account A and then transferred out the same day to purchase or get re-invested into another GIC,
By FBAR standards, it would appear that account A had 150k and the GIC had 100k, for a total of 250k when in actuality you only have 150k.
What I did was tabulate the GIC for the highest balance of the year, and tabulate account A for he highest balance of the year less the 'pass thru' of the matured and re-invested GIC.
Therefore my Account A shows 50k and the GIC shows 100k. All taxes paid on both accounts for any accured interest.
Any thoughts...or is it amendment time??
FBAR & Account reporting
Moderator: Mark T Serbinski CA CPA
Actually, was going to delete this post...but found out i couldn't.
I am of the opinion that the aggragate value of my accounts is the total sum that add to over the 10k threshold.
Of this information was duly noted and tabulated accordingly.
Therefore, IMO, I have reported all of my accounts and there true values. But more importantly I have paid tax on all of those accounts.
One can look at this many ways, but the GIC account value is correct, and although it was matured in and out of account A...it still maintained the same account number as it passed thru for maturity. (If you dont specify with the bank that you want to redeem the GIC...it automatically matures and re-invests into the same GIC account).
I am of the opinion that the aggragate value of my accounts is the total sum that add to over the 10k threshold.
Of this information was duly noted and tabulated accordingly.
Therefore, IMO, I have reported all of my accounts and there true values. But more importantly I have paid tax on all of those accounts.
One can look at this many ways, but the GIC account value is correct, and although it was matured in and out of account A...it still maintained the same account number as it passed thru for maturity. (If you dont specify with the bank that you want to redeem the GIC...it automatically matures and re-invests into the same GIC account).
As long as you report ALL accounts, and report its maximum value, you won't have to worry about daily fluctuatiions, which FBAR cares not about.
After 20 years, I am severely cutting back on responses. Do not ask specifically for my help. There are a few others on this board that can answer most questions. All the best
nelsona...
I post this reply knowing very well you are someone 'in the know'
In actuality...My GIC is quite high...so we are talking around 400k.
My Savings account is quite low...say around 30k
So.....this is the fluctuation I am talking about. I have a 400k GIC (same account number) going in and out of the saving account for one day (possibly 4 days if over the weekend) to be matured and re-invested.
I know this sounds academic....but a lot of us here are sort of at our wits end as we wade through this information. (If nothing else...It is a true testament of the innocent....as the guilty would not care).
The problem here is....how does the US department of the Treasury ...or the IRS interpret this.
If you feel I did the right thing...(my initial post), I will go silent on the matter. This is how much I respect your opinion.
I will qualify this by stating that, although this is my first post, I have taken advantage of reading threads without signing up, and your contribution(s) stand the test of time.
Also I am a bit OCD :)
I post this reply knowing very well you are someone 'in the know'
In actuality...My GIC is quite high...so we are talking around 400k.
My Savings account is quite low...say around 30k
So.....this is the fluctuation I am talking about. I have a 400k GIC (same account number) going in and out of the saving account for one day (possibly 4 days if over the weekend) to be matured and re-invested.
I know this sounds academic....but a lot of us here are sort of at our wits end as we wade through this information. (If nothing else...It is a true testament of the innocent....as the guilty would not care).
The problem here is....how does the US department of the Treasury ...or the IRS interpret this.
If you feel I did the right thing...(my initial post), I will go silent on the matter. This is how much I respect your opinion.
I will qualify this by stating that, although this is my first post, I have taken advantage of reading threads without signing up, and your contribution(s) stand the test of time.
Also I am a bit OCD :)