Titan Medical Inc (TMDIF)

[scalpel]

As I understand it: a passive foreign investment, PFIC, is treated differently then a stateside company or a foreign company that actually has sales.

You must declare it as a QEF every year starting with the year that you buy it.

PFIC capital gains are always taxed as short term capital gains, and not long-term capital gains.

If you do not do the above, the IRS can amortize your profits over the entire length of your ownership of the stock and then charge you penalties for not paying taxes all along even if you never garnered any profit during your time of ownership.

Most accountants and tax attorneys have no idea how this works. I suspect an IRS processor will also miss this on your tax return, hence some people’s opinion that you can just claim ignorance and let the chips fall where they may.

I think it will all land on your brokerage firm and how they handle it on your 1099B tax form.