# Question Re contracts on Form 8938



## ThomasTheProf (17 d ago)

Hi guys,
I am somewhat confused about the form 8938 requirements. Accounts etc. are clear, but they list "instruments and contracts" as well. Obviously, not any contract with a foreign partner can be meant (or should I report every visit to a restaurant? ), and it seems nobody reports rental contracts, for example.
Two things especially I am wondering about. Imagine this situation: Not really expat in Germany (but German expat in the us):
Let's say my parents visit their child in the US for a vacation. They travel around. Some costs are paid by the kid, some by the parents. In the end, the parents transfer, say, 4000$ for their share via wire transfer from their German account to the kid's US account. Is this a contract or something else which needs to be reported?
Or: Somebody living in the US (with reporting requirement fulfilled) travels to a different country to give a talk or attend a conference (researcher). The visited institute reimburses the person for (part of) the ticket and arranges local lodging for the time. Is that something which needs to be reported?

Thank you!


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## MrNiceGuy (12 mo ago)

I believe in Form 8938 they are referring to *financial contracts* such a Commodity Futures Contracts, Option Contracts, Contracts for Forward Delivery of foreign currencies and all Derivative Contracts in general (of which the previous 3 are examples). These are deals you make on an Exchange (London Metals Exchange, Eurex, etc.) or with a bank or broker; they are generally used by professional traders not ordinary people. Nothing to do with payments between children and parents.


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## Moulard (Feb 3, 2017)

There are a range of other far more common financial contracts that are reportable ..things like foreign issued life insurance or annuity policy ...so it does cover things used by ordinary people... and so it is not just professional traders etc that get caught up in reporting contracts...

But, that said, I agree with MrNiceGuy, none of your examples would be reportable .


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