Foreign bank account

Forum|Forum|5 years ago
March 13, 2021
1 reply
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Hi,

so I have a foreign bank account that never exceeded the value of $5000. My parents gifted me with more than $10’000, from the selling of one of their properties, in order to pay the mortgage on my house.

should I file a FBAR? Is that considered income? Even if it was a gift?

ToddL99

Gifts are not considered income and are not reported on your tax return.

You are not required to file a FinCEN Form 114, Report of Foreign Bank and Financial Accounts (FBAR) report for a foreign bank account where the value never exceeded $5000 during the calendar year.

From IRS comparison of Form 8938 and FBAR requirements: 

You are only required to file if: Aggregate value of financial accounts exceeds $10,000 at any time during the calendar year. This is a cumulative balance, meaning if you have 2 accounts with a combined account balance greater than $10,000 at any one time, both accounts would have to be reported.Aggregate value of financial accounts exceeds $10,000 at any time during the calendar year.