Certain day traders that qualify for trader tax status (TTS) may be eligible to make a Section 475 MTM election. If the election is made, the taxpayer reports their stock trades on Form 4797.
U.S. investors in passive foreign investment companies (PFIC) have to disclose their ownership on Form 8621 and include it with their tax return. U.S. investors may be able to make an MTM election for readily traded PFIC shares.
When a U.S. shareholder owns shares in a passive foreign investment company (PFIC), the shareholder must include a Form 8621 with their tax return. This article discusses the QEF election available to PFIC shareholders.
