Form 8621 to be filed with US Income Taxes

[easyinNJ]

I took an extension on my US taxes and am filling in 8621 for each Indian mutual fund that I own.

I notice most are losses. There is only one small gain.

QUESTIONS

(1)Can gains and losses be offset against one another?

(2)Since the net result is going to be loss, can I take a loss on my US taxes?

(3) Are these reported on Schedule D along with other transactions?

(4) Are they reported Individually or just lumped together?

Any suggestions or alternatives are welcome.


Thanks for answering.

Eswaran

[greyfri]

I took an extension on my US taxes and am filling in 8621 for each Indian mutual fund that I own.

I notice most are losses. There is only one small gain.

QUESTIONS

(1)Can gains and losses be offset against one another?

(2)Since the net result is going to be loss, can I take a loss on my US taxes?

(3) Are these reported on Schedule D along with other transactions?

(4) Are they reported Individually or just lumped together?

Any suggestions or alternatives are welcome.


Thanks for answering.

Eswaran

You do not use Schedule D. You sum up losses and gains from different PFICs, and report the total on line 21 of 1040 as ordinary income. You can offset your regular income with a PFIC MTM loss.

[easyinNJ]

I need more clarification.

What are "unreversed inclusions"?

As a simple example. suppose at the end of my tax year, my adjusted basis is $150 , market value of the mutual fund is $120, I received $20 in dividends.

I report $20 as income in Schedule B. Can I take $30 ($150-$120) as LOSS against my total income on Line 21?

Are the dividend figure($20) and LOSS figure ($30) anyway related? What is the "unreversed inclusion" number I should report on Line 6, Part III of Form 8621.

If I leave it blank, I will have a problem with Line 7, Part III.

Thanks for your help.

EasyinNJ

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