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PFIC Download Page New

Important White Paper: New Passive Foreign Investment Company (PFIC) Rules

With the enforcement of the Foreign Account Tax Compliance Act (FATCA), financial institutions around the world must now provide bank and investment account information on their American clients to the IRS. This increased information sharing process makes it difficult for U.S. tax filers to ignore the consequences of holding PFIC investments.

What You Need to Know: Passive Foreign Investment Company (PFIC)

Many Americans living in Canada or Canadian expats living in the U.S. unknowingly hold Canadian-traded mutual funds, money market funds and ETFs in their taxable or non-registered accounts that qualify as a PFIC.

What is a Passive Foreign Investment Company?

A passive foreign investment company (PFIC) is a foreign-based corporation that has one of the following attributes:
pfic-percentages-wide

  1. At least 75% of the corporation’s income is considered “passive”, which is based on investments rather than standard operating business.
  2. At least 50% of the company’s assets are investments that produce interest, dividends and/or capital gains

PFICs include foreign-based mutual funds, partnerships and other pooled investment vehicles that have at least one U.S. shareholder. Most investors in PFICs must pay income tax on all distributions and appreciated share values, regardless of whether capital gains tax rates would normally apply.

Download your free white paper and get up-to-date on what you need to know about PFICs.

Our white paper explains the following concepts and offers solutions:
pficstamp

  • What qualifies as a PFIC investment?
  • What types of accounts should a PFIC investment not be held in?
  • What are the adverse tax effects of holdings a PFIC investment?
  • What are the tax reporting requirements if you hold a PFIC investment?
  • How can Cardinal Point make your investment portfolio PFIC compliant?

Fill out form below to receive free PFIC Rules White Paper

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“Cardinal Point” is the brand under which dedicated professionals within Cardinal Point Capital Management, ULC provide financial, tax and investment advisory, risk management, financial planning and tax services to selected clients. Cardinal Point Capital Management, ULC is a US registered investment advisor and a registered portfolio manager in Canada (ON, QC, MB, SK, NS, NB, AB, BC). Advisory services are only offered to clients or prospective clients where Cardinal Point and its representatives are properly registered or exempt from registration. This website is solely for informational purposes. Past performance is no guarantee of future returns. Investing involves risk and possible loss of principal capital.