PFIC Tax calculation

[valleybuy]

Did you mean combined value including stocks (non PFIC but foreign stocks) Plus  PFIC should be more than 25,000? or only PFIC?

The combined value of my PFIC (foreign insurance, Mutuual funds etc) is less than $8,000 , that case I don't fill the form 8621 but only 8928 for dividends (Fatca)?

[DaveF1006]

The 8621 is filed only on the combined value of stock you own through a PFIC. This does not include non-PFIC holdings. Based on what you mentioned, you don't have a 8621 reporting requirement.

[valleybuy]

@DaveF1006 @RobertB4444 @shibupillai 

Thank you for detail inputs, noted them for my turbotax usage in 2023

I have India mutual funds (three of them collectively $8000) since 2003, became US tax resident since 2008, hence my PFIC gains are from 2008-2023. I have never filed 8621 but showing them in my 8938 and FATCA and paying taxes on their interest.

Question : I sold all of them this year.

Do i need to fill for 8621 or just show the capital gains in schedule capital gains as its under limit $25000

Default election is 1291 excess distributions, Can I select late MTM?

Is there a software to calculate the Excess distribution and the deferred tax and interest?

[valleybuy]

@SusanY1 @RobertB4444 

I  have Indian life insurance pension fund bought 20 years back , paid premium only beginning 5 years and it’s maturing next year.
I want to get rid of it so have options to encash the surrender value (grown 5 times) or postpone the maturity or convert to annuity that pays rest of life.

question if I surrender this pension fund is this classified as PFIC form 8621 and hence need to do 1291 excess distributions (highest taxable tax)
I assume pension funds are exempt from PFIC

if not then should I follow the same method above of reporting net of surrender cash value and USD converted premium as other income in 8938 and pay ordinary income tax?

[valleybuy]

I have Indian life insurance pension fund bought 20 years back , paid premium only beginning 5 years and it’s maturing next year.

I want to get rid of it so have options to encash the surrender value (grown 5 times) or postpone the maturity or convert to annuity that pays rest of life.

question if I surrender this pension fund is this classified as PFIC form 8621 and hence need to do 1291 excess distributions (highest taxable tax)I assume pension funds are exempt from PFIC

if not then should I follow the same method of reporting net of surrender cash value and USD converted premium as other income in 8938 and pay ordinary income tax?