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My question concerns form 8854, part IV, line 2: net worth I…

Good afternoon,My question concerns form...
Good afternoon,My question concerns form 8854, part IV, line 2 : net worth
I was, up to January 24th 2017, a dual citizen Swiss and American by birth.I have no other assets than bank accounts (checking, saving and private pension plan) Is my net worth the amount I had in the bank in 2016 minus what I had 5 years ago (2012) ? Can I use the figures from the FBar ? And in that case, fill out only column B (not the fair market value) as the amounts are already in US dollars ?And last thing, what is considered "a significant" change ?Thank you for your answer.Jacqueline
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Answered in 7 minutes by:
3/18/2018
Barbara
Barbara, Enrolled Agent
Category: Tax
Satisfied Customers: 6,379
Experience: 20+ years of experience in tax preparation; 30+ years of experience as a real estate/corporate paralegal.
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Welcome to Just Answer. My name is ***** ***** I will be happy to assist you.

You will be able to enter the amount on Line 2, Part IV AFTER you complete the balance sheet in Part V.

Please refer to the part and line regarding "significant" change.

Thank you and best regards,

Barb

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Customer reply replied 4 months ago
I know, the question is do I substract the amount in the bank in 2016 to the amount in 2013 to find the gain or loss , therefore the net worth to enter on line 2 part IV ?
OK, if my net worth is less than $2 million, I do not fill section B.
Customer reply replied 4 months ago
No phone call, I'd rather have a simple written answer. Thank you.

The offer of a phone call is system generated. Please ignore it.

Your net worth is as of the date of your expatriation for tax purposes or a reasonable estimate. You shouldn't have to do any subtractions.

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As to Section B,

Don't complete Section B if: • Your average net income tax liability for the 5 tax years immediately before expatriation (see line 1 in Section A) wasn't more than $162,000, your net worth (see line 2 in Section A) was under $2 million, AND you checked “Yes” on line 6 in Section A;

• In Section A, you checked “Yes” on lines 3, 4, and 6; or

• In Section A, you checked “Yes” on lines 5 and 6.

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Customer reply replied 4 months ago
Thank you, ***** ***** will enter what I had in the bank on the day of the renouncement of my US citizenship.

That's right.

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But you still have to complete Part V for the amount.

The total from Part V gets entered in Part IV, Line 2.

Make sense?

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Customer reply replied 4 months ago
it makes complete sense. In my case line 24 equals 0, so line 24 minus line 20 would be negative. Is that possible

If you have more liabilities than assets, yes. You would have a negative net worth.

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Customer reply replied 4 months ago
Oh God.... so now I wonder what "other liabilities" mean ? My tax liability for the past five years are 0

Other liabilities are any liabilities not listed on Lines 21 and 22.

Liabilities are mortgages, car payments, personal loans, etc.

Barbara
Barbara, Enrolled Agent
Category: Tax
Satisfied Customers: 6,379
Experience: 20+ years of experience in tax preparation; 30+ years of experience as a real estate/corporate paralegal.
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Barbara and 87 other Tax Specialists are ready to help you
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Customer reply replied 4 months ago
Super, thank you very much Barbara for all your answers.
Have a nice day.
Jacqueline

My pleasure.

Thank YOU for the positive rating of my answer. It is very much appreciated.

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