Pacun Posted March 25, 2017 Report Share Posted March 25, 2017 I have a client who opened a bank account in Chile with 20K. Then he traveled to Chile when the exchange rate was better. He then took out the money and exchanged it for $25K. He brought that money back to the US and fill out the custom forms and he held the money and later he deposited it back and then he went to Chile again and did the same thing and this time he made $29K. So he did it 4 times in 2016 and now I want to included that income about 18K on line 21. He has a full time job in the US and that something on the side. I told him that he needed to read about FBAR and to file the form. Am I on the right track? Thank you in advance. Quote Link to comment Share on other sites More sharing options...
ILLMAS Posted March 25, 2017 Report Share Posted March 25, 2017 This is called gain on currencies, the FBAR should apply if at any given day he had more then 10K in a foreign account. Quote Link to comment Share on other sites More sharing options...
Lion EA Posted March 25, 2017 Report Share Posted March 25, 2017 Does the gain go on line 21? Schedule D short term? Quote Link to comment Share on other sites More sharing options...
Abby Normal Posted March 25, 2017 Report Share Posted March 25, 2017 It's ordinary income so I'd say line 21. Quote Link to comment Share on other sites More sharing options...
Pacun Posted March 25, 2017 Author Report Share Posted March 25, 2017 3 hours ago, Lion EA said: Does the gain go on line 21? Schedule D short term? lol. Now you really make me think about this. Technically is Schedule D but I don't have any documentation since the bank is in Chile. He said that Chile was going to charge him taxes on the profits. So I am waiting for the amount paid to get a credit on the 1040. Quote Link to comment Share on other sites More sharing options...
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