Taxpayer gave advances (or deposit) to the Attorneys of condo complex Builder, to hold in escrow account
until the condo apartment is built and ready for closing. Builders, their attorneys, and the property site
are located in Canada.
The taxpayer has given more than US$10000 in deposit to the attorneys, and they pay a nominal rate of
interest, as required by Canadian law, and the interest amount is credited as adjustment at the time of
closing/purchasing the condo apartment.
Taxpayer reports on Schedule B (1040) interest income received from Attorneys (held in escrow account),
and may report on form 8938 if reporting threshold is met.
Question 1: Does the taxpayer has a requirement to file Form TD F 90-22.1 or not for the amount of deposit
held with the attorneys until the year of close of the purchase? Note that taxpayer has no control over the
deposit as he has committed to buy the condo and signed agreement.
Question 2: Does reporting on Form TD F 90-22.1 includes loan given to an individual living outside USA
if that amount exceeds US$10000? or only for accounts held with financial institutions?
Thank you and appreciate your opinions.
until the condo apartment is built and ready for closing. Builders, their attorneys, and the property site
are located in Canada.
The taxpayer has given more than US$10000 in deposit to the attorneys, and they pay a nominal rate of
interest, as required by Canadian law, and the interest amount is credited as adjustment at the time of
closing/purchasing the condo apartment.
Taxpayer reports on Schedule B (1040) interest income received from Attorneys (held in escrow account),
and may report on form 8938 if reporting threshold is met.
Question 1: Does the taxpayer has a requirement to file Form TD F 90-22.1 or not for the amount of deposit
held with the attorneys until the year of close of the purchase? Note that taxpayer has no control over the
deposit as he has committed to buy the condo and signed agreement.
Question 2: Does reporting on Form TD F 90-22.1 includes loan given to an individual living outside USA
if that amount exceeds US$10000? or only for accounts held with financial institutions?
Thank you and appreciate your opinions.
Comment