mutual funds and PFIC

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igrek
Posts: 21
Joined: Wed Aug 13, 2014 4:38 am

mutual funds and PFIC

Post by igrek »

Canadian mutual funds and ETFs are considered PFIC for US tax and hence should be avoided by dual US-Canada citizens living in Canada. US-registered mutual funds are not considered PFIC for US tax. However, does it matter in which financial institution the investment account that holds US mutual funds is? Specifically, if a US mutual fund or ETF is held within a self-directed investment account in a Canadian bank (e.g., RBC or CIBC), is it still not considered PFIC? Are there any additional reporting requirements due to the investment account being in a Canadian bank?
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