GLOSSARY · VISA-HOLDER FINANCE
Mark-to-market election (PFIC)
An election for a PFIC whose shares are marketable stock: each year's rise in value is taxed as ordinary income, without the interest charge of the default PFIC rules, and declines are deductible up to earlier inclusions. It is available only if the fund qualifies as marketable, and it works best when made in the first year the fund is held as a US person.
Also called: section 1296 election, MTM election, mark to market pfic
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CHAPTER · TAXES, MONEY BACK HOME AND REPORTING · STRATEGIESForeign Mutual Funds and the PFIC RulesRELATED TERMS
SOURCES
- Instructions for Form 8621. Internal Revenue Service.