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Level 2
posted Oct 7, 2024 7:29:31 AM

Pfic exemption question (form 8621)

I accidentally bought shares in a PFIC in my non-IRA account this year and wrote calls against them. I am wondering if anyone knows whether I'll be subject or exempt for the reporting requirements. 

 

I bought 20k of the PFIC and wrote $1500 worth of calls against it. I have liquidated the entire position. It was initiated in May and liquidated in October. I have a $46 loss on the stock, and a $390 profit on the calls. I received $226 in dividends.

 

I can't figure out if I've qualified for the 50k de minimus exemption (married joint). If not, can I purposefully generate a loss in the more options so that I won't have to report and how much of a loss do I need to generate?

Thx! 

0 3 8043
3 Replies
Level 15
Oct 7, 2024 8:39:24 AM

Level 2
Oct 7, 2024 10:46:11 AM

I've seen these links but they don't have much way in specifics.

 

Appreciate the help.

Level 15
Oct 7, 2024 12:10:28 PM

@selfprepper , sorry . This is outside of my knowledge bandwidth.  My applogies.

 

pk