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Screen 8621-3 - Passive Foreign Investment Company or Electing Fund, Page 3 (1040)

Select the corresponding passive foreign investment company (PFIC) or qualified electing fund (QEF) unit from the dropdown list. If more than 1 excess distribution applies, add additional units of the 8621-3 screen and associate the additional screens with the corresponding company or fund.

Distributions From and Dispositions of Sec. 1291 Fund Stock

If the holding period of the stock began but didn’t end in the current tax year, enter information in the 1st field and skip the rest of this data entry section. If the stock was disposed of during the tax year, skip Part V, lines 15b through 15e, and enter data for lines 15f and 16.
This amount reports on Form 8621, Part V, line 15a. It also automatically reports on Schedule B, line 5, as ordinary dividends when you skip Form 8621 Part V lines 15b through 15e.
When you enter total distributions in this field, reduce it by the portions of such distributions that were excess distributions and not included in income.
Gains recognized on the disposition of stock of a section 1291 fund are treated as excess distributions. Stock of a section 1291 fund is considered disposed of if sold, transferred, or pledged.
If the excess distribution from Form 8621, Page 3, line 15e, is more than zero, it is allocated in this statement for inclusion in other income on Schedule 1 (Form 1040). The nonexcess distribution (lesser of line 15a or 15d) is included on Schedule B. A "Sec. 1291 Distribution/Disposition of Stock" statement prints.
To determine this amount (calculated for all years), multiply the part of the excess distribution allocated to each year in the holding period (other than the current tax year and any pre-PFIC years) by the highest tax rate in effect for that tax year under section 1 or 11 (whichever applies).
Don’t include excess distribution taxes allocated to the current tax year or to pre-PFIC years. Excess distribution taxes are determined by apportioning total creditable foreign taxes (attributable to an excess distribution) between the part of the distribution that is an excess distribution and the part that is not.
To determine the interest, begin with the due date of the income tax return for the tax year to which an increase in tax is attributable; end with the due date of the income tax return for the excess distribution tax year. Consider due dates without regard to extensions. This reports in Other Taxes on Schedule 2 (Form 1040).

This article applies to:

  • Product: UltraTax CS
  • Return type: 1040 Individual
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