# FATCA in private company investment. Non traded shares.



## Hotscot (Feb 20, 2014)

Situation.

I am a US/UK citizen. When I worked for a French company I was invited, 4 years ago, with other management to invest a sum and received a letter detailing the amount of shares I own. The shares are not held in an accessible account. There is no annual reporting/valuation of the investment.

The company will be sold next year and my investment will realize Capital Gains or Losses.

It is a private company and the shares won't be valued until the sale of the company.

Therefore since it cannot be determined that I meet the Married $100,000 threshold for FATCA I believe I am not required to submit Form 8938.

My interpretation of Form 8938 is that *if* you first meet the reporting threshold *and* you also have some foreign assets for which the value *cannot* be determined, *then* you can list the value of *those particular *assets as zero.

However until my shares are valued it cannot be determined that I have met the reporting threshold for filing.


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## Bevdeforges (Nov 16, 2007)

If those shares are the only foreign assets you hold and their valuation really can't be determined, I would tend to go with your interpretation of the rules. (IIRC, there is some exemption for "blocked funds" which this would seem to be.)

The other rule to consider, though, is the 10% rule. If your investment gave you a 10% or greater interest in the company, you may fall under the other FATCA reporting rules. (FATCA is not an easy piece of legislation to completely understand.)
Cheers,
Bev


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## Hotscot (Feb 20, 2014)

Thanks Bev.
Much less than 10%, sorry I forgot to mention that.

From all my reading on the matter it seems that the no guidance has been issued on this scenario.

Although I am no expert I've been researching it extensively for the past 6 months. I shall keep all my research so that if it ever came to it I will demonstrate there was no willful intent on my part.

Again, thank you.


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