how to calculate form 8621 - line 15 - expat tax tools · pdf filename of pfic or qef ...

2013 - 2015

Basic Example

How to CalculateForm 8621 - Line 15

Mary Beth Lougen EA USTCPChief Operating Officer – Expat Tax Tools

[email protected] (844) 312-8670 ext. 402

www.f8621.com www.expattaxtools.com

PAGE 1 OF 34

Transaction Summary

Date Transaction Type Units USD 2013-10-01 Purchase 1,000.0000 10,000.00 2013-12-29 Dividend Distribution 50.00 2013-12-31 Return of Capital Distribution 200.00 2014-03-29 Dividend Distribution 50.00 2014-06-29 Dividend Distribution 50.00 2014-09-29 Dividend Distribution 50.00 2014-12-29 Dividend Distribution 50.00 2014-12-31 Return of Capital Distribution 300.00 2015-03-29 Dividend Distribution 50.00 2015-06-29 Dividend Distribution 50.00 2015-09-29 Dividend Distribution 50.00 2015-12-29 Dividend Distribution 50.00 2015-12-31 Return of Capital Distribution 300.00

Additional Information

2013 Annualized Distribution per unit: information not available 2013 Fair Market Value (FMV) on Dec 31: $ 10,000.00 2014 Fair Market Value (FMV) on Dec 31: $ 10,000.00 2015 Fair Market Value (FMV) on Dec 31: $ 10,000.00

PAGE 2 OF 34

Basic Example

2013 Section 1291 Calculations





PAGE 3 OF 34

Hide Details

PREVIEW ONLY / DO NOT FILE

CURRENT YEAR HOLDINGS

Allocation to Blocks Number of Securities Transactionamount(USD)

Adjustments After AdjustmentsBlock

Number Date Transaction Type Beginning of Year Additions Return ofCapital # of Securities Cost Base

1 10/01/13 Purchase 1,000.0000 10,000.00 200.00 1,000.0000 9,800.00

DISTRIBUTED & REINVESTED EARNINGS$ 50.00 USD Distribution on 12/29/13

Adjusted Annual Distributions Per Share: 2012: 0.000000 | 2011: 0.000000 | 2010: 0.000000

Holding Start Holding End Units Line 15a Line 15b Line 15c Line 15d Line 15e Line 16b Line 16c Line 16d Line 16e Line 16f10/01/13 12/29/13 1,000.0000 50.00

$ 200.00 USD Distribution on 12/31/13


Holding Start Holding End Units Line 15a Line 15b Line 15c Line 15d Line 15e Line 16b Line 16c Line 16d Line 16e Line 16f10/01/13 12/31/13 1,000.0000 200.00

EXCESS DISTRIBUTION SUMMARY

Line 15a Line 15b Line 15c Line 15d Line 15e Line 15f Line 16b Line 16c Line 16d Line 16e Line 16f250 0 0 0 0 0 0

2014 CARRYOVER CALCULATION

ADJUSTED DISTRIBUTIONS PER UNIT (LINE 15B)2013 Distributions Per Unit AdjustmentCalculating in Original Currency

Distribution Units Adjustment AdjustedDistribution

AdjustedDistribution Per Share

50.00 1,000.0000 0.00 50.00 0.0500000000200.00 1,000.0000 200.00 0.00 0.0000000000

Total 0.0500000000

2013 Adjusted Annual Distributions Per Unit: 0.0500000000

PAGE 4 OF 34


50.

Form 8621, Line 15a ETTWEBINAR0001A 50.

PAGE 5 OF 34

13

X

WEBINAR LINE 15b (FUN1000)

ETTWEBINAR0001A

13

Class A

10/01/13

1,000.000.

X

X 0.

PREVIEW ONLY

/ DO NOT FILE

PAGE 6 OF 34

PREVIEW ONLY

/ DO NOT FILE

PAGE 7 OF 34

** SEE CALCULATION STATEMENT (REF. ID ETTWEBINAR0001A) FOR LINES 15b TO 15d CALCULATION DETAILS

250. **

0.

0.

0.

0.

0.

0.

PREVIEW ONLY

/ DO NOT FILE

PAGE 8 OF 34

Name of PFIC or QEF line 1

line 2

(NOT Applicable)

Address of PFIC or QEF Street address

City

State

Zip or Postal Code

Foreign country

Foreign province

** Note that the CCH tax software rounds the number of units to the nearest numberwhich may results in an inaccurate or negative number of units at the end of the year.

Adjustments may be required.

1 of 1

INCOME/DEDUCTIONS | DIVIDENDS | DETAILSWarning! Make the following entries under the Dividends section if there was no slips issued for this fund, otherwise enter the slip information

TSJ Payer Name Ordinary DividendsForeignCountry

Code

ForeignIncomeCode

T Form 8621, Line 15a ETTWEBINAR0001A 50 CA 2

FOREIGN | 8621

2 WEBINAR LINE 15b (FUN1000)

3 ETT / #US

4 Employer Identification Number

5

6

7

8

9 Canada

10

14 Foreign Country Code CA

15 Foreign Income Code Passive Income

16 Reference ID Number ETTWEBINAR0001A

Additional Information Required

17

Class ofStock

Shares atBeginningof Year

Changes DuringYear Date of Change

Shares at YearEnd-

Override

Value of SharesHeld

Year End Jointly OwnedA 0.0000 1000.0000 10/01/13 1000.0000 10000

1 Total distributions from the section 1291 fund during the year 250

2 Total distributions made by the fund for each of the 3 years preceding the current tax year

3 Number of prior years if fewer than 3

4 Gain or loss from disposition of section 1291 fund stock

5 Excess Distribution override 0

6 Holding period beginning date 10/01/2013

7 PFIC applicable date

8 Holding period ending date 12/31/2013

9 Distribution number 1

DistributionNumber

CurrentYear

Distribution

ForeignTax

Credit

ExcessDistributionAlloc. to Each

Day inHolding Period

OR

Foreign TaxCredit

Alloc. to EachYear in

Holding Period OR

AmountAllocated toCurrent TaxYear and

PrePFIC years OR

TaxIncrease Override

ForeignTax Credit

-Override

Interest Override

1 0 0 0 0

1 Dividends (Schedule B)

PART 1 PFIC or QEF Information

PART 12 Distributions / Dispositions from Section 1291 Fund

PART 13 Section 1291 Distribution Detail

PAGE 9 OF 34





PAGE 10 OF 34

Basic Example


Hide Details






1 10/01/13 Purchase 1,000.0000 9,800.00 12.50 1,000.0000 9,787.50



Holding Start Holding End Units Line 15a Line 15b Line 15c Line 15d Line 15e Line 16b Line 16c Line 16d Line 16e Line 16f10/01/13 03/29/14 1,000.0000 50.00 10.00 10.00 12.50 37.50 18.33 7.59 0.00 7.59 0.23

Tax Year Days Allocated Excess Increase in Tax Allocated Foreign Tax Credit Additional Tax Interest2013 92 19.1667 7.59 0.00 7.59 0.23

** 2014 88 18.3333





** 2014 180 24.8162





** 2014 272 28.022





** 2014 363 29.9176





** 2014 365 229.6225



PAGE 11 OF 34

Line 15d: nonexcess distribution => taxed under section 301 Line 15e: excess distribution => taxed under section 1291

Excess distribution from Line 15e - daily allocation to holding period

37.50 / (92+88) * 92 * 39.6% prior year => 1291 tax37.50 / (92+88) * 88 current year => ordinary income

287.50 / (92+365) * 92 = 57.88 => amt for 1291 tax comp287.50 / (92+365) * 365 = 229.62 => ordinary income

GKiss_amexpa

Stamp

GKiss_amexpa

Stamp





50.00 1,000.0000 19.17 30.83 0.030833333350.00 1,000.0000 12.68 37.32 0.037316176550.00 1,000.0000 9.48 40.52 0.040521978050.00 1,000.0000 7.58 42.42 0.0424175824

300.00 1,000.0000 70.38 229.62 0.2296225383Total 0.3807116085


PAGE 12 OF 34

50.00- 19.17 amt allocated to 1291 tax--------------------------------------------- 30.83 amount included in income & considered a distribution for 2015 comps

300.00- 12.50 non excess dist (reported as Return of Capital)- 57.88 amt allocated to 1291 tax---------------------------------------------- 229.62 amount included in income & considered a distribution for 2015 comps


50.

STATEMENT LINE 21 331.

X 1291INT. 1.

X 1291TAX. 42.

STATEMENT LINE 21Form 8621, Line 16b ETTWEBINAR0001A / Excess allocated to current year or prePFIC periods 331.

TOTAL 331.

Form 8621, Line 15d ETTWEBINAR0001A 50.

PAGE 13 OF 34

total of line 15d amounts (12.50*4)not including the 12.50 nonexcess distribution from the $300 return of capital- remember if it is a nonexcess dist IRC 301 rules

total of lines 16b- excess distributions allocated to the current year are ordinary income

total of line 16c amounts- excess dist allocated to 2013 *39.6% -the highest tax rate for 2014

14

X


ETTWEBINAR0001A

14

Class A

1,000.000.

X

X 438.

PREVIEW ONLY

/ DO NOT FILE

PAGE 14 OF 34

PREVIEW ONLY

/ DO NOT FILE

PAGE 15 OF 34


500. **

438.

331.

42.

0.

42.

1.

PREVIEW ONLY

/ DO NOT FILE

PAGE 16 OF 34


line 2

(NOT Applicable)


City

State

Zip or Postal Code

Foreign country

Foreign province



1 of 1

INCOME/DEDUCTIONS | DIVIDENDS | DETAILS



Code

ForeignIncomeCode

T Form 8621, Line 15d ETTWEBINAR0001A 50 CA 2

FOREIGN | 8621


3 ETT / #US


5

6

7

8

9 Canada

10





17

Class ofStock



Shares at YearEnd-

Override

Value of SharesHeld

Year End Jointly OwnedA 1000.0000 1000.0000 10000








8 Holding period ending date 12/31/2014


DistributionNumber

CurrentYear

Distribution

ForeignTax

Credit

ExcessDistributionAlloc. to Each

Day inHolding Period

OR

Foreign TaxCredit

Alloc. to EachYear in

Holding Period OR

AmountAllocated toCurrent TaxYear and

PrePFIC years OR

TaxIncrease Override

ForeignTax Credit

-Override

Interest Override

1 331 42 0 1




PAGE 17 OF 34





PAGE 18 OF 34

Basic Example


Hide Details






1 10/01/13 Purchase 1,000.0000 9,787.50 53.84 1,000.0000 9,733.66



Holding Start Holding End Units Line 15a Line 15b Line 15c Line 15d Line 15e Line 16b Line 16c Line 16d Line 16e Line 16f10/01/13 03/29/15 1,000.0000 50.00 86.14 43.07 53.84 -3.84













Tax Year Days Allocated Excess Increase in Tax Allocated Foreign Tax Credit Additional Tax Interest2013 92 27.5509 10.91 0.00 10.91 0.752014 365 109.3051 43.28 0.00 43.28 1.64

** 2015 365 109.3051







50.00 1,000.0000 0.00 50.00 0.050000000050.00 1,000.0000 0.00 50.00 0.050000000050.00 1,000.0000 0.00 50.00 0.050000000050.00 1,000.0000 0.00 50.00 0.0500000000

300.00 1,000.0000 190.69 109.31 0.1093050886Total 0.3093050886


PAGE 19 OF 34

line 15b = 1000 sh * (0.05 + 0.38071 adjusted distributions) / 5 distributions rec'd in 2015

current yearprior 2 years adj

divided by 2times 125%

current yr minus 125% there is no excess distribution

line 15d is nonexcess distribution - taxed under IRC 301- it is return of capital

1291 tax of $10.91 = 246.16 / (92+365+365) * 92 * 39.6%

190.69 = 53.84 + 109.31 + 27.55 (extra .01 is due to rounding)


200.


X 1291INT. 2.

X 1291TAX. 54.


TOTAL 109.


PAGE 20 OF 34

nonexcess distributions that are dividends

excess distribution allocated to current year

deferred tax on excess distribution allocated to prior year

15

X


ETTWEBINAR0001A

15

Class A

1,000.000.

X

X 246.

PREVIEW ONLY

/ DO NOT FILE

PAGE 21 OF 34

PREVIEW ONLY

/ DO NOT FILE

PAGE 22 OF 34


500. **

246.

109.

54.

0.

54.

2.

PREVIEW ONLY

/ DO NOT FILE

PAGE 23 OF 34


line 2

(NOT Applicable)


City

State

Zip or Postal Code

Foreign country

Foreign province



1 of 1

1 of 1




Code

ForeignIncomeCode


FOREIGN | 8621


3 ETT / #US


5

6

7

8

9 Canada

10





19

Class ofStock



Shares at YearEnd-

Override

Value of SharesHeld










1 Distribution Number 1

2 Holding period ending date

3 Current Year Distribution

4 Foreign Tax Credit

5 Excess Distribution Allocated to Each Day in Holding Period override

6 Foreign Tax Credit Allocated to Each Year in Holding Period override

7 Amount Allocated to Current Tax Year and PrePFIC years override 109

8 Tax Increase override 54




PAGE 24 OF 34

9 Foreign Tax Credit override 0

10 Interest override 2

PAGE 25 OF 34





PAGE 26 OF 34

Basic Example

2015 Mark to Market Election

Hide Details






1 10/01/13 Purchase 1,000.0000 9,787.50 53.84 1,000.0000 9,733.66

TOTALS ON DECEMBER 31, 2015:

FMV: $ 10,000.00Total Shares: 1,000.0000FMV / Share: $ 10.0000

DEEMED DISPOSITION (DD)

Block ACB FMV in Block Gain on Block ACB at Year End Unreveresed InclusionsCarryforward Line 15f

1 9,733.66 10,000.00 266.34 10,000.00 266.34 266.34

DEEMED DISPOSITION GAIN ALLOCATION** Excess Distribution Allocated to Current Tax Year or PrePFIC period

Line 15f Holding Start Holding End Days Excess Per Day Line 16b Line 16c Line 16d Line 16e Line 16f266.34 10/01/13 12/31/15 822 0.32401460 118.27 58.64 0.00 58.64 2.59


** 2015 365 118.2653

















** 2015 365 109.3051


Line 15a Line 15b Line 15c Line 15d Line 15e Line 15f Line 16b Line 16c Line 16d Line 16e Line 16f500 246 266 228 113 0 113 5

PAGE 27 OF 34





50.00 1,000.0000 0.00 50.00 0.050000000050.00 1,000.0000 0.00 50.00 0.050000000050.00 1,000.0000 0.00 50.00 0.050000000050.00 1,000.0000 0.00 50.00 0.0500000000

300.00 1,000.0000 190.69 109.31 0.1093050886Total 0.3093050886


PAGE 28 OF 34


200.


X 1291INT. 5.

X 1291TAX. 113.


TOTAL 228.


PAGE 29 OF 34

15

X


ETTWEBINAR0001A

15

X

Class A

2,000.000.

X

X 513.

PREVIEW ONLY

/ DO NOT FILE

PAGE 30 OF 34

10,000.

10,000.

0

PREVIEW ONLY

/ DO NOT FILE

PAGE 31 OF 34


500. **

246.

266.

228.

113.

0.

113.

5.

PREVIEW ONLY

/ DO NOT FILE

PAGE 32 OF 34


line 2

(NOT Applicable)


City

State

Zip or Postal Code

Foreign country

Foreign province



1 of 1

1 of 1




Code

ForeignIncomeCode


FOREIGN | 8621


3 ETT / #US


5

6

7

8

9 Canada

10





19

Class ofStock



Shares at YearEnd-

Override

Value of SharesHeld





4 Gain or loss from disposition of section 1291 fund stock 266





1 Distribution Number 1

2 Holding period ending date

3 Current Year Distribution

4 Foreign Tax Credit

5 Excess Distribution Allocated to Each Day in Holding Period override

6 Foreign Tax Credit Allocated to Each Year in Holding Period override

7 Amount Allocated to Current Tax Year and PrePFIC years override 228

8 Tax Increase override 113




PAGE 33 OF 34

9 Foreign Tax Credit override 0

10 Interest override 5

1 Elect to marktomarket PFIC stockPART 6 Election to MarktoMarket PFIC Stock (Election C)

PAGE 34 OF 34

how to calculate form 8621 - line 15 - expat tax tools · pdf filename of pfic or qef ­...

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how to calculate form 8621 - line 15 - expat tax tools · pdf filename of pfic or qef ...