Can’t speak to IMGA, have never seen their PFIC statement, not reading that thread. However, being an index fund, I would not be all that surprised to see that they do generate cap gains on a regular basis from portfolio balancing etc.
To be clear though. “realized” means “the fund bought or sold something and thus experienced a cap gain”. The principle is that the fund is a pass-through entity, that “what happens to the fund happens to you”, e.g. it is like a K-1 for a MLP or US partnership. Whether you actually got any cash put into your bank account is neither here nor there.
Just took a look at the PFIC statement you posted for IMGA last year. Thanks for that. If only BlueCrow’s were that straightforward! Has anyone on the IMGA side verified that the capital gains reported were realized capital gains only? I’m wondering if other funds are doing this weird reporting of unrealized capital gains on the statement.
Actually, you’re all over that thread (and I just finished reading all of that advice a second time). You’ve been so helpful that you can’t even remember all the help you’ve given!
But you might not have looked at the PFIC statement itself. To summarize, for the explicit purpose of making us BC holders jealous, it has just three boxes:
daily rate of ordinary income
daily rate of net capital gains
cash/property distribution
All in USD. Oh, and a bunch of helpful instructions!
Completeness of net income? I suppose, though that seems more like the domain of the balance sheet than the PFIC statement. I wonder what they’ll do with the PFIC statement once they start liquidating and have both unrealized and realized capital gains.
I’m convinced! I can’t find a shred of evidence in the tax code that the IRS wants us to pay taxes on unrealized capital gains for a QEF. BC’s inclusion of that, and their response to my question (Q: Am I supposed to report this as capital gains? A: It’s unrealized capital gains) left me guessing and pointed in the wrong direction.
Like I said. I haven’t bothered. It isn’t worth my time, for the amount of error that might be there. You will need to explain your situation and concerns then have Duarte pass you to the lawyer they contracted to do the work.
