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Form 8938 - stock held on foreign stock exchange

Forum|Forum|1 year ago
March 24, 2025
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I own shares on the Australian Stock Exchange and started receiving dividends in 2024 tied to stock I received from my employer's long term incentive plan. First time and want to confirm my approach & get some answers:

1. I've created a 1099-DIV entry of $30,469 USD to match the dividend value I received from my foreign stock

2. Help with 8938 form: for the total value of the stock, I chose the highest value it hit in the year, converted into USD with the highest FX rate of the year, and it is $196,403 USD. Question: why total value since stock owned on the US stock exchange is not reported, only the dividend income received?

3. I entered the $30,469 USD dividends as a foreign financial asset. Question Do I also need to file an FBAR? And is correct to think of this as a foreign financial asset and not a foreign financial account?

4. Items attributable to "foreign financial asset" I've referenced #1 dividends above as Form 1040, line 3b

5. I manage the stock granted from my employee plan in a MUFG website (similar to Fidelity). Question: do I also enter it as the financial foreign account with address or skip this part since it's an asset?

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Best answer by pk12_2

@Kofian , we have here at least three different items "

(a) Dividend income --- you report the and get taxed on these earnings whether encashed / re-invested or otherwise. This is taxable income for US purposes.

(b) Form 8938 ( FATCA form ) -- this is not a taxable item -- just informational. Here you are reporting all "specified Financial " assets --- you report the actual value at the end of the year but you use the highest value for threshold ( to file ). There may be duplicate counting if you are moving monies between accounts . It is generally looking at liquid and semi-liquid items.

(c) FBAR ( form 114 at FinCen.gov and On-line reporting ONLY ) -- this counts ONLY liquid assets / accounts that you own/ control or have signature authority over. Depending on exacts facts and circumstances, you may have the same accounts reported on both FBAR and FATCA forms.

Does this answer your query ( and without going into specifics of your case ) ?

Do you need more on this -- will be glad to, if you so desire -- ?