# Question about FBAR



## Cherylelove (Oct 15, 2017)

Have a big question about FBAR. My husband and I recently got a HELOC. One of the requirements by our credit union was they pay off ALL our credit cards and personal loan debts. Mine in the US and his in Canada. Once we got the loan approved they put $42,000 CAD into our joint account but only made $9,000 available to us, the balance frozen and taken out by the credit Union in the form of direct payments to the Canadian creditors and cashiers checks to my American creditors. At no time did I, the American have any access to more than the $9,000 they made accessible.

This is my only foreign account. I have an account in the US with Wells Fargo where my SS check goes into and I’m keeping it.
So my question is…. How do I report this? Or do I have to report the $42,000 since I did not have access to more than $9,000 CAD of it? A wee bit confusing…..🧐🥴


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## Harry Moles (11 mo ago)

Ultimately it doesn't matter since nobody really looks at FBAR or FATCA data. If it helps you sleep at night, say it's whatever $42k is in USD and report the account on an FBAR. (There's no penalty for over-reporting; there's no percentage owed on the total.) If you already sleep well at night, say it's $9k and don't file an FBAR because you're under the limit. Same outcome either way - crickets.


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## Cherylelove (Oct 15, 2017)

Thanks for your answer. I’m a novice at this… have never had more than say $2,000 in a foreign account in the 4 years I’ve lived in Canada and probably won’t again until we decide to sell our home. All the warnings I read online had me a wee bit panicked but if I read the information right that I have seen it’s money “available” for me to access that I have to report if it’s $10,000 USD or more. Correct?


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## Moulard (Feb 3, 2017)

In banking and tax law what is generally important is not whether it is "available" but whether or not you have had constructive receipt of the funds.

If they have deposited $42k into your account then you would have had constructive receipt of the funds even if you could not withdraw it due to the terms of your loan.


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## Cherylelove (Oct 15, 2017)

Moulard said:


> In banking and tax law what is generally important is not whether it is "available" but whether or not you have had constructive receipt of the funds. If they have deposited $42k into your account then you would have had constructive receipt of the funds even if you could not withdraw it due to the terms of your loan.


 thanks! Makes sense. It was $42,000 CAD so I assume I convert it to USD and report that amount on FBAR?


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## Moulard (Feb 3, 2017)

Cherylelove said:


> It was $42,000 CAD so I assume I convert it to USD and report that amount on FBAR?


Correct. Convert using the rate published by US Treasury for 31 Dec.









Treasury Reporting Rates of Exchange | U.S. Treasury Fiscal Data


Exchange rate information for foreign currencies and their U.S. dollar equivalents, updated quarterly.




fiscaldata.treasury.gov


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