X

Sign up to receive our latest News & Insights!


By submitting this form, you are consenting to receive marketing emails from: Philip Stein & Associates, Mailing Address: POB 45414 , Jerusalem, 91451, http://www.pstein.com. You can revoke your consent to receive emails at any time by using the SafeUnsubscribe® link, found at the bottom of every email. Emails are serviced by Constant Contact

PFIC (Passive Foreign Investment Companies)

We can help you clean up your portfolio to reduce any exposure and eliminate any PFICs

The IRS has been focusing on the reporting requirements of a PFIC (Passive Foreign Investment Companies) and making investing in foreign countries more complicated.  Most people have no idea what qualifies as a PFIC, and it is all too easy to declare income from PFIC's incorrectly. In order for an investment to be a PFIC it needs to be considered a ‘passive corporation’.  It passes this test if it meets one of the following requirements:

  • 75% or more of the gross income of the investment is passive income
  • 50% of assets held by the investment produce passive income, or is held for the production of passive income.

Most Non-U.S. Mutual Funds fall under this definition and will be subject to this onerous tax. Additionally, even if you only own these investments, and don’t sell any, you may still have to report numerous annual forms listing their values.

We can help you:

  • Identify which investments are PFICs and which are not
  • Clean up your portfolio to reduce any exposure and eliminate any PFICs in the best methods possible
  • Invest in PFICs in the best way possible to minimize taxes