Question

Foreign Trust

Forum|Forum|2 years ago
April 12, 2024
1 reply
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I had applied for a loan from a foreign bank in India, and the loan amount was credited to my foreign bank account in India. While filling out TurboTax form, there's a section called: "Tell us about any Foreign Trust" so is a Foreign bank considered as a foreign trust, or is a trust something other than a bank? If I select "I received distribution or loan from a foreign trust" option in the above section, it asks to file form 3520 which I do not think is required for me, and I may only need to report this amount on FBAR and Form 8938, but want to clarify this.

DaveF1006

No a Foreign Trust is not a foreign bank so you did not receive this distribution from a foreign trust. there is no 3520 reporting requirement.

There is a FBAR reporting requirement if the account had a balance of more than $10,000 during the year. There is a FATCA (8938) reporting requirement if the account balance is more than $50,000 on the last day of the tax year or more than $75,000 at any time during the tax year if you are filing single or more than $100,000 on the last day of the tax year or more than $150,000 at any time during the tax year if filing Married Filing Jointly.

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