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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PFIC cost of home-country mutual funds →What does holding my home-country mutual funds cost me in US tax?
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CHAPTER · TAXES, MONEY BACK HOME AND REPORTING · STRATEGIESForeign Mutual Funds and the PFIC Rules
RELATED TERMS
PFIC (passive foreign investment company)Form 8938 (FATCA)
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