Foreign Investments

8/29/2018

What is Passive Foreign Investment Firm?

A Passive Foreign Investment Corporation is any foreign investment company where 75% or more of its gross income for the tax year is from passive income or 50% or more of its assets produce passive income or are held to produce passive income.

What Type of Income is Included in Passive Foreign Income?

Passive Income includes most investments income i.e. Interest, dividends, rents, annuities, and the sale or exchange of capital assets. Almost all foreign mutual funds are Passive Foreign Investment Firms (Corporation). Stock you hold directly in a corporation can also be a Passive Foreign Investment Firm/Corporation stock if the foreign corporation's activities meet one of the test to the left.

*this list is not exhaustive.

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Spencer Accounting Group, LLC does not provide investment, tax, legal, or retirement advice or recommendations in these blogs. The information presented here is not specific to any individual's personal circumstances.

To the extent that this material concerns tax matters, it is not intended or written to be used, and cannot be used, by a taxpayer for the purpose of avoiding penalties that may be imposed by law. Each taxpayer should seek independent advice from a tax professional based on his or her individual circumstances.

These materials are provided for general information and educational purposes based upon publicly available information from sources believed to be reliable — we cannot assure the accuracy or completeness of these materials. The information in these materials may change at any time and without notice.

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Keana Spencer is an Accountant, Entrepreneur, and Educator to her clients, with a strong passion. Keana has over 10 years of experience and through her practice, she is a source of knowledge and strategies to her clients.

Keana founded this website and decided and created this blog page to offer a space for those seeking knowledge to understand, however not to be confused with advice or planning strategies.

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