Reporting PFIC income when not required to file Form 8621

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nelsona
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Reporting PFIC income when not required to file Form 8621

Post by nelsona » Tue Jan 29, 2019 4:44 pm

There are a few exceptions to filing Form 8621 for PFICs.
If one meets one of those exceptions, for example, having less than $25K is such investments, are they still required to pay yearly tax on the undistributed income, if, for example, they use the Mark-to- Market reporting method?
Nelsona Non grata. Non pro. Search previous posts.

CdnAmerican
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Joined: Tue Aug 30, 2011 12:15 am

Re: Reporting PFIC income when not required to file Form 8621

Post by CdnAmerican » Tue Jan 29, 2019 11:27 pm

Good question! I thought that you had to pay these mark-to-market, regardless of the amount kept in the fund. But I'm really not sure.
Not a professional opinion.

nelsona
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Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Re: Reporting PFIC income when not required to file Form 8621

Post by nelsona » Wed Jan 30, 2019 11:06 am

yeah. All the writing I see on this focuses on getting out of filing the Form, but IMO you still have to go through the trouble of calculating and paying tax on these each year. and if you do QEF, then you lose the de minimis exemption.
Nelsona Non grata. Non pro. Search previous posts.

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