PFIC with loss, doesn't matter?

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tony
Posts: 97
Joined: Tue Oct 18, 2016 8:50 pm

PFIC with loss, doesn't matter?

Post by tony »

If foreign mutual funds overall is a loss, can I ignore it? (don't declare on 8621).
Hence, default 1291 rule won't have any effect because no profit anyway.
Rather than difficulties in filing 8621 yearly, it's better to do it once for all when ceasing to be a US resident or when the fund is starting to make profit.

1. is this idea correct?
2. in this case, can i still use the loss in my tax?

thanks
MGeorge
Posts: 313
Joined: Fri Jun 22, 2012 9:23 am
Location: Canada

Re: PFIC with loss, doesn't matter?

Post by MGeorge »

Yes - don't declare the loss on the 8621 - it won't go on your tax return from form 8621.
However, losses in a PFIC under any election can be reported on Schedule D on your 1040.
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MGeorge is neither an accounting nor taxation professional.
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