US TAX

[RAVINDRATURAGA]

UNDER US TAX LAWS IN THE CASE US TAX ALIANCE INCREASE IN  NAV OF MUTUAL FUNDS IN FOREIGN COUNTRY IS IT TAXABLE?

[pk]

@RAVINDRATURAGA , 

(a) is this a real situation or hypothetical/class  question?

(b) are you US person ( citizen / GreenCard / Resident for Tax purposes ) or NRA ?

(c) If you are invested in Foreign Mutual Fund, which country, is it through a US broker / entity or a foreign broker, are the Mutual Fund shares traded on the US market also or just in foreign country ?

I ask all this because the rules of  recognition of  realized and unrealized gain is significantly dependent on whether the Mutual Fund is "regulated" or not  per US Treasury view.  At worst foreign mutual fund could be  regarded as PFIC  ( Passive Foreign Investment Company ) and subject to such harsh regs,

So please tell more about the situation --yes ?