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Screen 8621-2 - Passive Foreign Investment Company or Electing Fund, Page 2 (1040)

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Gain or (Loss) From Mark-to-Market Election

Use this section to enter the amounts required for calculating gain or loss from mark-to-market election for Part IV of Form 8621.
Unreversed inclusions
In the corresponding
Unreversed inclusions
 fields, enter the excess of the PFIC stock amounts that the U.S. shareholder included in income for prior tax years under the mark-to-market rules over the amounts allowed as a deduction. For more information, see the Form 8621 instructions.
Treatment for Sec. 1296 stock loss that exceeds unreversed inclusions
Select
S
 to treat the loss on Form 8621, line 14 (Sec. 1296 stock loss that exceeds the unreversed inclusions) as a short-term capital loss reported in Part I on Schedule D. Select
L
 to treat the loss as a long-term capital loss reported in Part II on Schedule D. The default is long-term.

Status of Prior Year and Termination of Sec. 1294 Elections

Use this section to enter the amounts required for completing the status of prior-year section 1294 elections and termination of section 1294 elections for Form 8621, Part VI.
Undistributed earnings
Enter the undistributed earnings of the QEF for which the payment of tax was extended by the section 1294 election. If the election was partially terminated in a prior tax year, enter the remaining undistributed earnings.
Deferred tax
Enter the tax for which payment was extended due to the section 1294 election. If the election was partially terminated in a prior tax year, enter the balance of the deferred tax.
Deferred tax interest accrued
Enter the accrued interest on the deferred tax. Accrued interest calculates from the return’s due date on the year of the section 1294 election until the filing date for the current year’s return.
Election completely terminated
Enter
X
 only if the related election was completely terminated. The deferred tax due with this return automatically calculates and is included in Other Taxes on Schedule 2 (Form 1040).
Earnings distributed
Enter the earnings distributed or deemed distributed as a result of the terminating event. Events terminate the most recently made election first.
Accrued interest due w/return
The accrued interest on the deferred tax (calculated from the return’s due date on the year of the section 1294 election until the filing date for the termination year’s return) is included in Other Taxes on Schedule 2 (Form 1040).

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