Various GICs and US PFIC rules

[Canadian Newbie]

Hi all-

I read a previous post where it was discussed that a GIC investment in a Canadian bank would not be subject to the PFIC reporting rules to the IRS. It appears that the rules have not changed since that post however one quick question....some banks offer GICs which are based on returns in the market and mutual funds.

Would these GICs be subject to the PFIC rules?
If not I assume I would just report the account on the FBAR and 8938 the same as other time deposit accounts.

Thanks in advance.

[MGeorge]

Hello,

Market-linked GICs would not be considered PFICs. Similar to futures and other contract derivatives - these wouldn't be considered PFICs. I saw a bank suggesting these as a good option for US taxpayers living in Canada.

[Canadian Newbie]

[quote="MGeorge"]Hello,

Market-linked GICs would not be considered PFICs. Similar to futures and other contract derivatives - these wouldn't be considered PFICs. I saw a bank suggesting these as a good option for US taxpayers living in Canada.[/quote]


I was hoping that was the answer. I am staying away from mutual funds to avoid the PFIC form.

Thanks for the response!

[brianbbc]

what bank was it?

[ashwin0731]

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