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The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.
Example 3. I am not married and
do not live abroad. I sold my only
specified foreign financial asset on
October 15, when its value was
$125,000. You have to file Form
8938. You satisfy the reporting
threshold even though you do not hold
any specified foreign financial assets
on the last day of the tax year
because you did own specified
foreign financial assets of more than
$75,000 at any time during the tax
year.
Example 4. I am not married and
do not live abroad. An unrelated
U.S. resident and I jointly own a
specified foreign financial asset
valued at $60,000. You each have
to file Form 8938. You each satisfy the
reporting threshold of more than
$50,000 on the last day of the tax
year.
Example 5. I am not married and
do not live abroad. I own an entity
disregarded for tax purposes,
which owns one specified foreign
financial asset valued at $30,000.
In addition, I own a specified
foreign financial asset valued at
$25,000. You have to file Form 8938.
You own both the specified foreign
financial asset owned by the
disregarded entity and the specified
foreign financial asset you own
directly, for a total value of $55,000.
You satisfy the reporting threshold of
more than $50,000 on the last day of
the tax year.
Example 6. My spouse and I do
not live abroad. We file a joint
income tax return and jointly own
a single specified foreign financial
asset valued at $60,000. You and
your spouse do not have to file Form
8938. You do not satisfy the reporting
threshold of more than $100,000 on
the last day of the tax year or more
than $150,000 at any time during the
tax year.
Example 7. My spouse and I do
not live abroad. We file a joint
income tax return, and jointly and
individually own specified foreign
financial assets. On the last day of
the tax year, my spouse and I
jointly own a specified foreign
financial asset with a value of
$90,000. My spouse has a separate
interest in a specified foreign
financial asset with a value of
$10,000. I have a separate interest
in a specified foreign financial
asset with a value of $1,000. You
and your spouse have to file a
combined Form 8938. You and your
spouse have an interest in specified
foreign financial assets in the amount
of $101,000 on the last day of the tax
year. This is the entire value of the
specified foreign financial asset that
you jointly own, $90,000, plus the
value of the asset that your spouse
separately owns, $10,000, plus the
value of the asset that you separately
own, $1,000. You and your spouse
satisfy the reporting threshold of more
than $100,000 on the last day of the
tax year.
Example 8. My spouse and I do
not live abroad. We file separate
income tax returns and jointly own
a specified foreign financial asset
valued at $60,000 for the entire
year. Neither you nor your spouse
has to file Form 8938. You each use
one-half of the value of the asset,
$30,000, to determine the total value
of specified foreign financial assets
that you each own. Neither of you
satisfies the reporting threshold of
more than $50,000 on the last day of
the tax year or more than $75,000 at
any time during the tax year.
Example 9. My spouse and I file
separate income tax returns,
jointly and individually own
specified foreign financial assets,
and do not live abroad. On the last
day of the tax year, my spouse and
I jointly own a specified foreign
financial asset with a value of
$90,000. My spouse has a separate
interest in a specified foreign
financial asset with a value of
$10,000. I have a separate interest
in a specified foreign financial
asset with a value of $1,000. You
do not have to file Form 8938 but your
spouse does. Your spouse has an
interest in specified foreign financial
assets in the amount of $55,000 on
the last day of the tax year. This is
one-half of the value of the asset that
you jointly own, $45,000, plus the
entire value of the asset that your
spouse separately owns, $10,000.
You have an interest in specified
foreign financial assets in the amount
of $46,000 on the last day of the tax
year. This is one-half of the value of
the asset that you jointly own,
$45,000, plus the entire value of the
asset that you separately own,
$1,000. Your spouse satisfies the
reporting threshold of more than
$50,000 on the last day of the tax
year. You do not satisfy the reporting
threshold of more than $50,000 on the
last day of the tax year or more than
$75,000 at any time during the tax
year.
Example 10. My spouse and I
are U.S. citizens but live abroad for
the entire tax year and file a joint
income tax return. The total value
of our combined specified foreign
financial assets on any day of the
tax year is $150,000. You and your
spouse do not have to file Form 8938.
You do not satisfy the reporting
threshold of more than $400,000 on
the last day of the tax year or more
than $600,000 at any time during the
tax year for married individuals who
live abroad and file a joint income tax
return.
Example 11. My spouse and I
live abroad and file separate
income tax returns. My spouse is
not a specified individual. On the
last day of the tax year, my spouse
and I jointly own a specified
foreign financial asset with a value
of $150,000. My spouse has a
separate interest in a specified
foreign financial asset with a value
of $10,000. I have a separate
interest in a specified foreign
financial asset with a value of
$60,000. You have to file Form 8938
but your spouse, who is not a
specified individual, does not. You
have an interest in specified foreign
financial assets in the amount of
$210,000 on the last day of the tax
year. This is the entire value of the
asset that you jointly own, $150,000,
plus the entire value of the asset that
you separately own, $60,000. You
satisfy the reporting threshold for a
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Instructions for Form 8938 (Rev. 11-2021)