I own shares in a foreign mutual fund. Do I need to worry about PFIC rules and Form 8621?
I'm a U.S. resident and before I moved here, I invested about $50,000 in a mutual fund domiciled in Luxembourg through my European brokerage. I've held it for 5 years now and it's grown to about $75,000. I just learned that foreign mutual funds might be classified as PFICs and subject to punitive taxation. What exactly is a PFIC, does my fund qualify, and what do I need to file?
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