Solved

If there is a loan in excess $10,000 from a foreign individual to a family member in the United States, is an FBAR required to be filed?

Forum|Forum|7 years ago
June 3, 2019
1 reply
0 views

No interest will be charged. Loan repayments will be made to the foreign family member through wire. A promissory note will be used to document the loan.

TurboTax Business Windows

Best answer by Opus 17

The FBAR report is required if a US "taxpayer" (citizen, or resident alien subject to US tax law) owns a foreign bank account worth more than $10,000.

If someone is loaning you money, presumably they are putting money in your bank account for you to spend. If that account is in the US, it's not a foreign account even though the money is from a foreign source. If the account is foreign, and you draw money from the account as needed, then you own a foreign account.

O

Opus 17Answer

Employee

The FBAR report is required if a US "taxpayer" (citizen, or resident alien subject to US tax law) owns a foreign bank account worth more than $10,000.

If someone is loaning you money, presumably they are putting money in your bank account for you to spend. If that account is in the US, it's not a foreign account even though the money is from a foreign source. If the account is foreign, and you draw money from the account as needed, then you own a foreign account.