How to report Brokerage account in Form 8938?

Forum|Forum|2 years ago
March 19, 2024
2 replies
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I have a brokerage account in India that hold various stocks from Indian stock market and the value exceeds 100K. I understand that I need to report this account in Form 8938.

Questions

1) Is this considered a financial account or financial asset? I think it is financial account.

2) Assuming this is considered financial account, I can see ONLY two choices in TurboTax, Deposit account or Custodial account.

Which one should I select?

Uploaded screenshot

Best answer by DaveF1006

Yes, it is a financial account. It would be considered a custodial account for 8938 reporting purposes.

DaveF1006Answer

Yes, it is a financial account. It would be considered a custodial account for 8938 reporting purposes.

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pk12_2

Employee

@GanaVK , having read through your post, and reply by my colleague @DaveF1006 ( and generally agreeing with ) let me just add the following ( nuances)

For purposes of FATCA reporting , the stocks / bonds that you hold are indeed financial assets to be included in FATCA threshold determination

Additionally I would include any cash held in custody for in vestment / distribution is a financial custodial account and must be counted for purposes of FATCA regs.

Also note that custodial account cash may be counted towards FBAR reporting ( because it is liquid)

Does this help or confuse the situation?

Is there more one can do for you ?