Foreign mutual funds? Offshore investments? Learn why PFIC rules matter and how they could trigger big tax bills for U.S. expats.

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Transcript:
I think when we talk about PFIC in
in the expat context right
I mean there's
there's a number of ways
that you see this come up in practice
but I think the one that everyone is at least heard of
or is familiar with
is the concept of owning a non US fund
the way that the PFIC rules work is they basically say
an investment in what's considered to be a
a corporation for US tax purposes
so a fund uh
if it generates income that's considered passive
of greater of
of 75% or greater or it has assets
the value of which is 50% or more passive
generating income assets that this
this fund or this investment
if you will will be treated as a
a passive foreign investment company or a PFIC
so that's kind of what a what a PFIC is
is in a broad brush

#PFIC #USExpatTaxes #CrossBorderFinance #MatthewHitchcockCPA #PassportToWealth #ForeignInvestments #InvestingAbroad