Final answer:
Lucca should report his financial interest in a foreign account on the financial account section of his tax return. He may need to fill out additional forms such as FBAR and FATCA.
Step-by-step explanation:
If Lucca has a financial interest in a financial account in a foreign country, he should report it on his tax return in the financial account section. This is where assets and investments held outside the home country are reported. When reporting a financial interest in a foreign account, Lucca may need to fill out additional forms such as the Foreign Bank Account Report (FBAR) and the Foreign Account Tax Compliance Act (FATCA) form depending on the specific requirements of his home country.
Lucca should report his financial interest in a financial account in a foreign country on IRS Form 8938, Statement of Specified Foreign Financial Assets, if certain threshold conditions are met. Additionally, he may need to file a FinCEN Form 114, Report of Foreign Bank and Financial Accounts (FBAR), separately from his tax return, if the aggregate value of all foreign financial accounts exceeded $10,000 at any time during the calendar year.