Hi Susan, the short answer is, if you elect QEF reporting (which is beneficial to most tax payers) you need to report both LTCG and ordinary income each year based on the fund’s PFIC statement (NOT based on the reported share price). Earlier in this thread you can find past reported values for IMGA and Optimize. Your U.S. tax obligation will depend on your personal situation. The “good” news is that you then increase your cost basis by these reported amounts, reducing your capital gains when you ultimately sell your fund shares. Even if you don’t elect QEF reporting, you are still required to report annually, but in a very different manner. If someone told you there was no tax reporting, you may consider finding someone who knows more about how PFICs work.
Disclaimer: I am not a tax professional. The information shared here is based on my personal understanding and should not be considered legal or tax advice. Please consult a qualified tax advisor for guidance specific to your situation.
Thank you!
Completely agree with @jhashkes here… Make sure you (and your tax prep people) understand IRS Form 8621 (I’m assuming you’re a US citizen). Plus FBAR requirements, etc. Otherwise, you could be in for a very rude shock.
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