Simple 8621 question

CdnAmerican · Post by **CdnAmerican** » Fri Mar 30, 2012 5:24 pm

I have read that mutual funds purchased through banks/credit unions in Canada (just your typical mutual fund, ones with a listing in the newspaper) are not considered PFICs, as the bank is considered a corporation rather than a PFIC. It seems like there is conflicting information on this point, however.

I have looked through lots of old posts here, but none seems to tap this issue specifically.

I am a USC living in Canada. My question is, If I hold an MF (not in an RRSP) through a bank or credit union, is an 8621 still required?

Thanks in advance!

jenfin · Post by **jenfin** » Sat Apr 07, 2012 11:51 am

My understanding is yes. I did it last year for the first time. Then in 2011 sold most of my mutual funds so will file 8621s this year treating them as 1291 funds on the form which will result in an unwanted and somewhat sizable for me tax hit.