# Fbar/fatca



## KK2018 (Oct 14, 2018)

I am working on preparing my FBAR filing for 2017. I am a US person living abroad.

I am a 39% owner in a company and also a signatory on its bank account. 

The company took a loan that was deposited into the account. should the maximum value of the account be reported including the loan or should i deduct the loan amount from the maximum value?

The answer would also affect my FATCA filing of form 8938 cause the threshold would be reached. I already filed my 1040 back in April but did not include form 8938. Should i file an extension if the threshold is reached? would there be any penalties? 

Thanks


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## Bevdeforges (Nov 16, 2007)

As an owner of a foreign business, for the FBAR filing, you would report your signature authority in the "signature authority but no financial interest" category. Yeah, it makes no sense, but that's where you report signature authority over business or association accounts.

The loans are not reportable for FBAR purposes. 

As far as the 8938 is concerned, the balances in the business account don't count when figuring the threshold amounts for your personal tax returns. You may wind up needing to file a form 5471 as someone with a "significant" interest in "certain foreign corporations" - but you need to determine that based on your holdings and your specific situation.
Cheers,
Bev


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## KK2018 (Oct 14, 2018)

Thank you Bev,

you mentioned that "The loans are not reportable for FBAR purposes". 
1- Should i report the maximum balance of the account
2- if yes, Should i deduct the loan amount deposited into the same company account from the maximum balance reached during the year?

KK


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## Bevdeforges (Nov 16, 2007)

Don't report anything about the loan - certainly not on the FBAR. Use the high balance for the year for the account, with no "adjustments."
Cheers,
Bev


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## Moulard (Feb 3, 2017)

Out of idle curiosity, as a significant shareholder how are you addressing potential Form 5471 filing requirements? Ignoring it is a perfectly acceptable answer


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