Alas, I discovered only after investing in a PFIC earlier this year (the Central Fund of Canada) that PFICs involve special tax treatment and onorous tax reporting requirements. Fortunately, perhaps, I hold that fund in a nontaxable retirement account.
Here's my question: Considering that this fund is held in a nontaxable account, is there any reason to file a Form 8621, or is the tax issue completely moot? I ask this because it occurred to me that there might possibly be unusual tax wrinkles when the funds are ultimately withdrawn.
Thanks in advance for any insights on this!
~Emily Lynn
Here's my question: Considering that this fund is held in a nontaxable account, is there any reason to file a Form 8621, or is the tax issue completely moot? I ask this because it occurred to me that there might possibly be unusual tax wrinkles when the funds are ultimately withdrawn.
Thanks in advance for any insights on this!
~Emily Lynn