Assets Not Required To Be Reported

You are not required to report the following assets.

Certain Financial Accounts

The following financial accounts and the assets held in such accounts are not specified foreign financial assets and do not have to be reported on Form 8938.

financial asset before the last day of the tax year.

Exception for Financial Account Statement Currency Conversion Rate

You may rely on the foreign currency conversion rate reflected in a financial account statement issued at least annually by the financial institution maintaining the account.

Reporting the Value of Jointly Owned Assets

If you own an asset jointly with one or more persons, you must report the asset's maximum value as follows.

Married Specified Individuals Filing a Joint Income Tax Return

If you are married and you and your spouse file a joint income tax return, report any specified foreign financial asset that you jointly own only once and include the maximum value of the entire asset (and not just the maximum value of your interest in the asset). Also, you must report any specified foreign financial asset that you or your spouse separately owns and include the maximum value of the entire asset. If you and your spouse file a joint income tax return that includes Form 8814, you must report any specified foreign financial asset your child owns only once and include the maximum value of the entire asset.

Married Specified Individuals Filing Separate Income Tax Returns

If you are married and you and your spouse are specified individuals who file separate income tax returns, both you and your spouse report any specified foreign financial asset that you jointly own on your separate Forms 8938, and both you and your spouse must include the maximum value of the entire asset on your separate Forms 8938. You must also report any specified foreign financial asset that you own individually on your separate Form 8938 and include the maximum value of the entire

asset. If you file Form 8814, you must report any specified foreign financial asset your child owns and include the maximum value of the entire asset.

Other Joint Ownership

If you are a joint owner of a specified foreign financial asset and you cannot use one of the special rules for married individuals who file a joint tax return, you must report the specified foreign financial asset and include the maximum value of the entire asset.

Valuing Financial Accounts

You may rely on periodic account statements for the tax year to report a financial account's maximum value unless you know or have reason to know based on readily accessible information that the statements do not reflect a reasonable estimate of the maximum account value during the tax year.

Valuing Other Specified Foreign Financial Assets

In most cases, you may use the value of a specified foreign financial asset that is not a financial account and that is held for investment and not held in an account maintained by a financial institution as of the last day of the tax year, unless you know or have reason to know based on readily accessible information that the value does not reflect a reasonable estimate of the maximum value of the asset during the tax year.

Example 15. I have publicly traded foreign stock not held in a financial account that has a fair market value as of the last day of the tax year of $100,000, although, based on daily price information that is readily available, the 52-week high trading price for the stock results in a maximum value of the stock during the tax year of $150,000. If you are required to file Form 8938, the maximum value of the foreign stock to be reported is $150,000, based on readily available information of the stock’s maximum value during the tax year.

Valuing Interests in Foreign Trusts

If you are a beneficiary of a foreign trust, the maximum value of your interest in the trust is the sum of the following amounts.

• The value of all of the cash or other property distributed during the tax year from the trust to you as a beneficiary.

Instructions for Form 8938 (Rev. 11-2021) -9-

same tax year. See Form 3520-A and its instructions.

• You report the filing of Form 3520 and 3520-A on Form 8938.

Instead, you must identify on Form 8938 how many of these forms you file. See Part IV. Excepted Specified Foreign Financial Assets , later.

If you are a specified