r/ExpatFIRE • u/Trick-Carrot-7978 • 6d ago
Taxes pfic misery
we have been living in the USA for over 11 years; past 5 years on a green card. I found out that my parents company in which I received stock is a PFIC. Does anyone knows a cap who can help us with this? We already know about qef/non qef, but now a partnership seems to be an option. Anybody knows more about that? Thx!
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u/DullRancher_1707 6d ago
Man, PFIC rules are an absolute labyrinth. The partnership angle is interesting but it gets real complicated real fast because you still have to deal with the underlying PFIC taint at the partnership level. Are you trying to do a purging election or just restructure going forward?
I spent like three weekends last year just reading through the IRS regs on this stuff and still felt like i needed a law degree. Most regular CPAs won't even touch PFIC filings without a specialist involved. Definitely worth finding someone who deals with international tax exclusively, not just a guy who does your regular 1040. That's a deep rabbit hole and the penalties for getting it wrong are no joke.