FBAR and Loan account question
Posted: Sat Apr 23, 2011 1:29 am
FBAR requirement requires that a person with aggregate foreign accounts > $10,000 in value file form 90.221. How is the aggregate computed?
For e.g. if a person has a foreign loan account, will the loan's balance (which happens to be negative) be also included in the aggregate calculations? E.g. for a particular year, if the interest-bearing income accounts total maximum aggregate be $15,000 and the loan account's maximum balance be -$100,000 will the negative loan account balance wipe out the +ve aggregate balance, and will this grant an exception to the filer from filing an FBAR?
In this particular case, all the foreign accounts (including interest-bearing income accounts and loan accounts) are not only located within the same country but also within the same bank.
For e.g. if a person has a foreign loan account, will the loan's balance (which happens to be negative) be also included in the aggregate calculations? E.g. for a particular year, if the interest-bearing income accounts total maximum aggregate be $15,000 and the loan account's maximum balance be -$100,000 will the negative loan account balance wipe out the +ve aggregate balance, and will this grant an exception to the filer from filing an FBAR?
In this particular case, all the foreign accounts (including interest-bearing income accounts and loan accounts) are not only located within the same country but also within the same bank.