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Level 3
posted Mar 24, 2022 5:00:40 PM

How to use Turbotax for PFIC bought and sold in same year

I bought a stock in 2021 and sold in 2021 with a gain. It turned out the stock is classified as a PFIC. The company sent the PFIC annual information statement. All boxes (ordinary earnings, net cap gain, cash / property distribution) in the statement are zero. 

For my 2021 tax return:

Fill out Form 8621 manually outside of turbotax, check box A to elect QEF, fill out lines 6a through 7c with zeros.

Enter the stock transaction like any other stock transaction in turbotax, the transaction will show up as a short term capital gain in schedule D

No need to do any manual override with forms in turbotax

Mail tax return printout from turbotax and form 8621 to IRS.

Mail state tax to IRS with all forms required by my state.

Did I miss anything?  Thanks in advance!

0 2 1018
2 Replies
Expert Alumni
Mar 24, 2022 5:15:44 PM

You reported the investment sale correctly in TurboTax. TurboTax does not support the form 8612, so I can't comment on that though.

Level 3
Mar 25, 2022 1:33:46 PM

Thanks Thomas. Anyone else has included PFIC in Turbotax filing and can help with my question?