Instructions For Form 8938 - 2016 (Page 6 of 14) in pdf

of $10,000. I have a separate interest

organized under the laws of a U.S.

non-retirement savings accounts

in a specified foreign financial asset

possession (American Samoa, Guam,

described in Regulations section

with a value of $60,000. You have to

the Northern Mariana Islands, Puerto

1.1471-5(b)(2)(i), you must report

file Form 8938 but your spouse, who is

Rico, or the U.S. Virgin Islands).

retirement and pension accounts,

not a specified individual, does not. You

non-retirement savings accounts, and

Foreign financial institution. In

have an interest in specified foreign

accounts satisfying conditions similar to

most cases, a foreign financial

financial assets in the amount of

those described in Regulations section

institution is any financial institution that

$210,000 on the last day of the tax year.

1.1471-5(b)(2)(i) that are otherwise

is not a U.S. entity and satisfies one or

This is the entire value of the asset that

excluded from the definition of a

more of the following.

you jointly own, $150,000, plus the

financial account by an applicable

It accepts deposits in the ordinary

entire value of the asset that you

Model 1 IGA or Model 2 IGA. Thus,

course of a banking or similar business.

separately own, $60,000. You satisfy

such accounts are subject to uniform

It holds financial assets for the

the reporting threshold for a married

reporting rules and must be reported

account of others as a substantial part

individual living abroad and filing a

without regard to whether the account is

of its business.

separate return of more than $200,000

maintained in a jurisdiction with an IGA.

It is engaged (or holds itself out as

on the last day of the tax year.

being engaged) primarily in the

business of investing, reinvesting, or

Interests in Specified Foreign

Specified Foreign Financial Assets

trading in securities, partnership

Financial Assets

interests, commodities, or any interest

Specified foreign financial assets

(including a futures or forward contract

include the following assets.

You have an interest in a specified

or option) in such securities, partnership

foreign financial asset if any income,

1. Financial accounts maintained by

interests, or commodities.

gains, losses, deductions, credits, gross

a foreign financial institution.

proceeds, or distributions from holding

A foreign financial institution includes

2. The following foreign financial

or disposing of the asset are or would

investment vehicles such as foreign

assets if they are held for investment

be required to be reported, included, or

mutual funds, foreign hedge funds, and

and not held in an account maintained

otherwise reflected on your income tax

foreign private equity funds.

by a financial institution:

return.

Other specified foreign financial as

a. Stock or securities issued by

sets. Examples of other specified

someone that is not a U.S. person

You have an interest in a specified

foreign financial assets include the

(including stock or securities issued by

foreign financial asset even if no

following, if they are held for investment

a person organized under the laws of a

income, gains, losses, deductions,

and not held in a financial account.

U.S. possession),

credits, gross proceeds, or distributions

Stock issued by a foreign corporation.

b. Any interest in a foreign entity,

from holding or disposing of the asset

A capital or profits interest in a foreign

and

are included or reflected on your income

partnership.

tax return for this tax year.

c. Any financial instrument or

A note, bond, debenture, or other

contract that has an issuer or

form of indebtedness issued by a

Interests in property transferred in

counterparty that is not a U.S. person

foreign person.

connection with the performance of

(including a financial contract issued by,

An interest in a foreign trust or foreign

services. You are first considered to

or with a counterparty that is, a person

estate.

have an interest in property transferred

organized under the laws of a U.S.

An interest rate swap, currency swap,

in connection with the performance of

possession).

basis swap, interest rate cap, interest

services on the first date that the

rate floor, commodity swap, equity

property is substantially vested (within

For foreign financial assets excepted

swap, equity index swap, credit default

the meaning of Regulations section

from reporting, see

Assets Not Required

swap, or similar agreement with a

1.83-3(b)) or, if you have made a valid

To Be

Reported, later.

foreign counterparty.

section 83(b) election with respect to

Foreign social security. An interest

An option or other derivative

the property, on the date of transfer of

in a social security, social insurance, or

instrument with respect to any of these

the property.

examples or with respect to any

other similar program of a foreign

Interests in assets held by disregar

currency or commodity that is entered

government is not a specified foreign

ded entities. If you are the owner of a

into with a foreign counterparty or

financial asset.

disregarded entity, you have an interest

issuer.

Financial account. A financial account

in any specified foreign financial assets

Assets held for investment. You hold

is any depository or custodial account

owned by the disregarded entity.

an asset, including a partnership

(under Regulations section 1.1471-5(b)

Interests in jointly owned assets. A

interest, for investment if you do not use

(1)(i) or (ii)) maintained by a foreign

joint owner of an asset has an interest in

financial institution as well as any equity

it in, or hold it for use in, the conduct of

the entire asset. For special rules for

or debt interest in a foreign financial

any trade or business.

interests in assets jointly owned by

institution (other than interests that are

Stock is not considered used or held

spouses, see

Joint interests

regularly traded on an established

for use in the conduct of a trade or

Determining the Total Value of Your

securities market) or any cash value life

business.

Specified Foreign Financial Assets,

insurance or annuity contract

earlier, and

Reporting the value of jointly

For taxable years beginning on

maintained by an insurance company or

owned

assets, in Reporting Maximum

or after December 12, 2014, if

other foreign financial institution. A

Value, later.

you are required to file Form

specified foreign financial asset

CAUTION

8938, in addition to reporting retirement

Interests in assets held in financial

includes a financial account maintained

and pension accounts and

accounts. If you have an interest in a

by a financial institution that is

Instructions for Form 8938 (2016)

Instructions For Form 8938 - 2016 Page 6

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