Hi

I have a few questions regarding FBAR form:

1. I have to enter information about shares. What should be the "Maximum value of account during calendar year reported" be for shares? Do I need to find out the highest price of the shares in 2011 and then calculate the net value or can I use the price on Dec 31st 2011?
2. There are a few shares that I sold in Jan 2012. Do I have to report that in the FBAR form too?
3. What rate should I use to convert INR to USD?
4. I have a joint account with my father and mother, but there is no "principal" joint owner. Can I enter either of their name?
5. Unlike tax return FBAR has to be filed separately for couples if they don't hold any joint accounts with each other- Is that correct?
6. My wife has a few bank accounts, shares and mutual funds - they all sum up to more than 25 accounts. Does that mean she doesn't have to fill anything in the FBAR form other than Part 1 (Part 3,4,5 don't apply). But why is that so - it sounds bizarre to me because they are asking people with more than 25 accounts to not declare anything at all. Did I understand this correctly?
7. I have a life insurance policy from LIC India. If I don't die in 20 years, I get back the premium I will be paying for 20 years plus some interest. Does this policy count as "insurance policy with a cash value"? If yes, then what is the value I should enter - should it be a) The value on maturity 20 years later or b) The amount of premium I have already paid so far?

Thanks a lot in advance for your help!

1) Yes, you must determine the date at which the highest value of the stcoks were attained, then report that value.

2) No, not unless the highest value date occurred before you sold those shares.

3) Use the conversion rate as of 31 December 2011.

4) If your father or mother are non-resident aliens from India, do NOT enter their names; they have NO FBAR reporting requirement. Enter YOUR name as the primary owner.

5) Analyze the accounts that have your wife's name on them. If they, in aggregate, exceed $10,000, she must submit her OWN FBAR report, even if the accounts reported are also on YOUR FBAR. The only time she can avoid this requirement is if her accounts are ONLY the joint accounts, in which case she simply signs YOUR FBAR as well, effectively making it a "JOINT" FBAR.

6) The people with MORE than 25 accounts do not have to report the details on this FBAR, but they DO have to retain the information for each account for FIVE years if they IRS comes and asks for the details at a later date.

7) In my opinion, your life insurance policy DOES have cash value. If the inusrance cannot give you that cash value, then, yes, count the premiums paid as its value on 31 December 2011.

Thanks a lot ATE!

I am confused regarding securities account vs. shares.
I have securities account, that is a Demat account in India that is used to sale/purchase shares.. so when I am asked to declare all securities do I need to give the account number of the Demat account or all the shares that I have bought through that demat account? What is considered to be the value of the demat account?
And finally does the demat account + say shares of 5 companies I purchased through it count total as 6 accounts or just 1 account?

Thanks a lot!

Give the account number for the Demat account.

Go through your 2011 statements and enter the HIGHEST account balance.

The Demat account is the ONE account that covers ALL of the stocks.