PFIC Rules for Hong Kong and China Funds: Form 8621, Excess Distributions, QEF and Mark-to-Market
Hong Kong and China funds and non-U.S. ETFs held by U.S. persons are usually PFICs, each needing Form 8621. The default regime taxes gains at top rates plus interest; holdings of $25,000 or less ($50,000 joint) with no sale may skip the annual part.
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