Hotscot

But no FBAR. That's for financial accounts.

livinginUSA

Sorry - not understanding what you mean?

<EDIT> Oh, you mean the FBAR is also part of the FATCA law!

All I have left in the UK is an account with a small amount (way under 10k, more like £30) and that is not subject to FBAR and 8938, so I have been kinda off the radar for those. Unless I have missed something major?!

I always check the box on the schedule B though!

Hotscot

"If you have a financial interest in or signature authority over a foreign financial account, including a bank account, brokerage account, mutual fund, trust, or other type of foreign financial account'

What I mean is that there are many other different types of investment structures that are not the above. But these are the ones that need reported under FBAR.

I understand you've recently been playing around with investing? It's fascinating subject and actually, if young enough, you have a marvelous opportunity to get on the road to wealth in later life. I absolutely wish I could go back in time and take advantage of things that I wasn't aware of at the time but I did catch up later. Here's some things to consider...

If you have a 401k..max it. The end results is you keep more of the money you earn, every year, as the tax you pay is reduced. Generally speaking...every $12,000 you save, will only actually cost you $8,000. It's an amazing saving structure.

Check out low cost index funds vs actively managed funds. It's fun 'playing' with single stocks but those are far more risky when a dollar will buy you a piece of all of the top 500 companies. Low cost funds like Vanguard, Fidelity let you keep more of your returns rather than going to a 'manager'. And those fees could add up to many, many thousands later.

Investigate Dividend Reinvestment. DRIP. Then your returns become a curve, every year they grow at a higher rate than the year before.

Keep saving something. Generally your investments will double in value every 7 or so years. Think about that. Plug some numbers in.

Have a play with this.
Compound Interest Calculator

For further education
https://www.bogleheads.org/forum/ind...e4f5533b2b8b5b

Have fun. It's the Get Rich Slowly Plan

Or not so slowly actually.

livinginUSA

I appreciate the advice! I really do. I have been taking advantage of my 401k and I also have a roth IRA too. I am intrigued and intimidated by the stock market, but I plan on playing around soon. It does seem fun!

Those compound interest calculators make me feel better about aggressive saving for sure, and certainly puts a lot in perspective. Appreciate the links!

Just a quick question while I re-educate myself:

FBAR: if you have over $10k in the year in a financial account (as you listed) - you must file

8939: if you have $50k at the end of the tax year, or $75k during the year (in certain foreign accounts) = you must file

For me, I have one current/checking account with £30 (at most £200 in a year when traveling in the UK) in it, a normal savings account that actually has zero in it, and a credit card (plus a student loan I am almost done with!). Unless I am missing something, I wouldn't need to file the FBAR and 8938, right?

Again, thanks for the help!

Hotscot

Right

And 'playing' the stock market, also know as market timing is fun like gambling is fun.

However if you really want to retire with, literally, millions..slow, steady, consistent, low/manageable risk, low fees.

Not sexy but exceedingly effective.

livinginUSA

Thanks! For a moment there I thought I had missed something and needed to go back and file back FBAR's and 8938's! Ha, good to know I am ok

And I plan on aggressively putting money in my 401k for sure - I am fully on board for the "slow, steady, consistent, low risk, low fees" - I know that's the right way to aim for retirement.

And despite living in Vegas, I'm not a gambler, but I enjoy reading and watching trends for companies/technologies - so that could be fun to play with!

And seriously - thanks again for making me feel better about the FBAR and 8938. I was freaking out for a second that I needed to file - I hadn't really thought of that stuff before!

JAJ

I thought this has come up before and the answer is that, based on facts submitted, it's a private company share investment, reportable on form 8938, and if you have no better indication of value you use cost.

No share certificate? Really? So you say you own x% of the company but have no evidence to prove it?

No control over the company? The company must have shareholder meetings from time to time, are you telling us that you have no notification or involvement?

And you say you paid for this investment?

Hotscot

I thought this has come up before and the answer is that, based on facts submitted, it's a private company share investment, reportable on form 8938, and if you have no better indication of value you use cost.

It has, I'm sorry. I revisited it. Was thinking out loud and didn't really intend to make an issue.
Initial investment was before FATCA came into being.
Initial investment was $20,000 therefore less than $50,000


No share certificate? Really? So you say you own x% of the company but have no evidence to prove it?

I have a document stating my initial investment, stating the value of the company at the time, and stating the amount of shares I own but there has been no market valuation since the initial investment. Perhaps this is considered a share certificate?

No control over the company? The company must have shareholder meetings from time to time, are you telling us that you have no notification or involvement?
The class of share ownership doesn't entitle me to attend general shareholder meetings and I granted power of attorney to others as a condition of keeping the investment when I left the company.


And you say you paid for this investment?

Of course. It's a large European private military/defense/science manufacturer. Certainly not some small shady deal or anything. Any doubts I have are purely due to my lack of understanding of investment tax laws.

Again, I wasn't really intending to revive feedback. Been busy in recent years setting up my own company. I wasn't intending to report under FATCA but certainly declaring my return when it happens. (However now that it is in my mind I may as well contact the company legal dept and determine once and for all what the situation is.)

Cook_County

So did you make an 83(b) election when you got the stock?

Hotscot

No. Not sure it applies in this situation?