Fatca

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karlen
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Hi, just wondering if anybody has had issues on Fatca? I tried opening a stock account and encouraged my american hubby to join. This is the first time ive heard of fatca and im a lil bit confused. Is it better to just leave the stock account under my name?

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Dave Hounddriver
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I had no idea what FATCA was until your post.  While many of our members are Americans and will know what you are talking about, some of us have to look it up on Wikipedia and find:

 

The Foreign Account Tax Compliance Act (FATCA) is a United States federal law that requires United States persons, including individuals who live outside the United States, to report their financial accounts held outside of the United States, and requires foreign financial institutions to report to the Internal Revenue Service (IRS) about their U.S. clients. Congress enacted FATCA to make it more difficult for U.S. taxpayers to conceal assets held in offshore accounts and shell corporations, and thus to recoup federal tax revenues.[1] The FATCA is a portion of the 2010 Hiring Incentives to Restore Employment (HIRE) Act.[2][3]

 

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OnMyWay
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Hi, just wondering if anybody has had issues on Fatca? I tried opening a stock account and encouraged my american hubby to join. This is the first time ive heard of fatca and im a lil bit confused. Is it better to just leave the stock account under my name?

 

If you are talking about a Philippine stock account, yes, keep everything in your name.  Your husband would have to pay US taxes on any money he makes on Philippines investments.  He should keep his investments in the US unless he is very savvy on international investing and tax laws.

 

FATCA is basically is basically the reporting requirement to report if you have over $10,000 USD in any overseas financial accounts during a year.    It is not really a big deal but it is nice to stay under $10,000 and avoid it.

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MikeB
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FATCA is basically is basically the reporting requirement to report if you have over $10,000 USD in any overseas financial accounts during a year.

I'm wondering how it would pertain to a foreign life insurance policy. Annual contribution or total policy or what? 

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OnMyWay
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Good point.  A p500,000 policy would be over 10k and I know someone who has one.

 

Just checked.  Yes, insurance must be reported but only if it has a cash value.  So I guess "Term" life is ok.  Don't you just love those guys!   :1 (103):

 

http://www.irs.gov/Businesses/TypesofForeignAssetsandWhetherTheyareReportableonForm-8938

Edited by OnMyWay
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karlen
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Wondering why they are asking us to fill up a fatca questionnaire when the stock account is only a 5,000.00 starter.

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jon1
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Wondering why they are asking us to fill up a fatca questionnaire when the stock account is only a 5,000.00 starter.

I would hazard a guess that it is for in case in the future you go above the $10,000 threshold. Our Philippine Bank (BPI) is asking for us to sign a reporting waiver and prefill a US IRS document so that they can be in compliance with the regulation.

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karlen
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Did u sign it?

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jon1
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Yes I did sign it. I am not worried as I never have $10,000 in my account

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Alby
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What bothers me is I used to be asked to report anything foreign above 10 USD even before FATCA? So, what's new?

My new fear is they'd close everything if one is not a US resident, including brokerage accounts!

Sent from my iPhone using Tapatalk

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