The painful FBAR + 8938 question

Discussion in 'Taxes and Accounting' started by ggelitetrader000, Jan 4, 2019.

  1. I have kept for several year few grands in my foreign account and now FBAR is bothering me. I guess I have to start paying attention now because failure to ignore can incur harsh penalty as much as 50%

    Last year, I deposit moderate amount of my savings into high-interest bank in my home country to take advantage of interest income however currency devaluation this year has been severe such that has killed or expected to all of the interest plus resulting in some loss. For the remaining few months, it is likely to continue to devalue more or stabilize hopefully. I do not expect the the currency to recover because historically (last 20 years), it has been constantly been on devaluation run). How do I report this? In local currency in which interested being paid, I see the interest accumulated is worth several thousand dollars but after the savings term of 1 year (few months from now on), when I convert back to USD dollar at the newer devalued rate there is going to be no gain and actually some loss.

    Now FBAR is mandatory which I did last year (became of one of 1 million of us citizens who did vs. about 7 millions who did not according to investopedia) but there is also income reporting form 8938 to which any gain to be reported.