By Edward Parsons, CPA | Ed Parsons CPA, Doral, Florida | Representing taxpayers nationwide | You must file Form 8621 if you are a U.S. person who is a direct or indirect shareholder of a PFIC and, during the year, you received a distribution, sold at a gain, made or reported a QEF or mark-to-market […]
Form 8621: Who Must File | Ed Parsons CPA Read More »
The PFIC asset test asks whether, on average across the year, at least 50% of a foreign corporation’s assets are passive, meaning they produce passive income or are held to produce it. Cash, stocks, bonds, and similar holdings count as passive. If the answer is yes, the company is a PFIC, even if it would
How to Calculate the PFIC Asset Test (the 50% Rule) Read More »
By Edward Parsons, CPA | Ed Parsons CPA, Doral, Florida | Representing taxpayers nationwide The PFIC income test asks one question: in a given tax year, is 75% or more of a foreign corporation’s gross income passive? Passive income means earnings like interest, dividends, rents, and royalties. If the answer is yes, the company meets
How to Calculate the PFIC Income Test (the 75% Rule)? Read More »
By Edward Parsons, CPA | Ed Parsons CPA, Doral, Florida | Representing taxpayers nationwide A PFIC, or Passive Foreign Investment Company, is a foreign corporation that earns most of its money from passive sources or holds mostly passive assets. The most common examples are non-U.S. mutual funds and ETFs. If you are a U.S. taxpayer
What Is a PFIC? A Plain-English Guide for U.S. Investors With Foreign Funds Read More »