pk
Level 15
Level 15

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@Nkm171964      

Nalin ji    Namaste

 

Recognizing that  the result of  recognizing an insurance  company as a PFIC means  (a)  the income from this is ordinary  and (b)  the life benefits  are taxable,  the following items at least will need to be retained  for  filing when the contract is terminated : 

              (a) yearly amounts of contribution in US$  ( can use yearly average  exchange rate published by the US Treasury ) ;

              ( b) yearly valuation of the account  ( either share price or whatever the  insurance entity provides  ) again in US$

              (c)  any distributions must be recognized as  either interest / dividend earnings and taxed ( even if it is re-invested )

              (d)  when the final distribution  or payout occurs ( for any reason ), you must recognize the taxable  portion ( return amount LESS total contribution ) as ordinary income per PFIC rules.

 

This is what comes to mind and is intended only as a directional attempt.

 

Is there more I can do for you ?

 

Namaste ji

 

pk