Assumes no QEF or mark-to-market elections have been made. Complete a separate calculation for each block of stock in which you have a different holding period.
Line 15c, Average distributions for the prior 3 years (or less if the hldg. per. is shorter): $20,000
Line 15d, 125% of average distributions for the prior 3 years (or less if the hldg. per. is shorter): $25,000
Line 15e(1) and (e)(2), Excess distribution: $75,000
Nonexcess distribution (lesser of Line 15a (100,000) or Line 15d ($25,000)): $25,000. This amount is included on Schedule B as a non-qualified dividend.
| Year | Days | Alloc'd Excess Distr. |
Tax Rate | Def'd Tax Amt. |
FTC | DTA after FTC |
Interest Charge |
Comment |
|---|---|---|---|---|---|---|---|---|
| 2011 | 27 | 411 | 35.0% | — | 62 | — | — | Pre-PFIC year (no deferred tax or interest) |
| 2012 | 366 | 5,571 | 35.0% | — | 836 | — | — | Pre-PFIC year (no deferred tax or interest) |
| 2013 | 365 | 5,556 | 39.6% | — | 833 | — | — | Pre-PFIC year (no deferred tax or interest) |
| 2014 | 365 | 5,556 | 39.6% | — | 833 | — | — | Pre-PFIC year (no deferred tax or interest) |
| 2015 | 365 | 5,556 | 39.6% | 2,200 | 833 | 1,367 | 894 | --- |
| 2016 | 366 | 5,571 | 39.6% | 2,206 | 836 | 1,370 | 815 | --- |
| 2017 | 365 | 5,556 | 39.6% | 2,200 | 833 | 1,367 | 729 | --- |
| 2018 | 365 | 5,556 | 37.0% | 2,056 | 833 | 1,223 | 567 | --- |
| 2019 | 365 | 5,556 | 37.0% | 2,056 | 833 | 1,223 | 474 | --- |
| 2020 | 366 | 5,571 | 37.0% | 2,061 | 836 | 1,225 | 409 | --- |
| 2021 | 365 | 5,556 | 37.0% | 2,056 | 833 | 1,223 | 361 | --- |
| 2022 | 365 | 5,556 | 37.0% | 2,056 | 833 | 1,223 | 293 | --- |
| 2023 | 365 | 5,556 | 37.0% | 2,056 | 833 | 1,223 | 190 | --- |
| 2024 | 366 | 5,571 | 37.0% | 2,061 | 836 | 1,225 | 86 | --- |
| 2025 | 151 | 2,299 | 37.0% | — | 345 | — | — | Current year (no deferred tax or interest) |
| Totals | 75,000 | 21,008 | 11,250 | 12,669 | 4,818 | |||
Attach a schedule like this to Form 8621.
Form 8621, Part V, Line 16b: The excess distribution allocated to the current year (2025) is $2,299. The excess distribution allocated to the Pre-PFIC years is $17,095. The sum of these two amounts, $19,393, is included on Form 8621, Part V, Line 16b and included as "Other Income" on Form 1040, Schedule 1, Line 8z. Distributions that were excess distributions but not included in income totaled $55,607 ($75,000 - $19,393). [Important for computing Line 15b in future years.]
Form 8621, Part V, Line 16c: The deferred tax amount of $21,008 is included on Form 8621, Part V, Line 16c
Form 8621, Part V, Line 16d:
The total tax withheld was $15,000.
The tax related to the nonexcess distribution was $3,750.
The tax related to the excess distribution was $11,250.
The tax related to the excess distribution pre-PFIC years was $2,564.
The tax related to the excess distribution current year was $345
The tax related to the years in which there was a deferred tax amount (the "DTA Years") was $8,339. This amount should be included on Form 8621, Part V, Line 16d.
The excess distribution tax allocated to the pre-PFIC years and the current year (the "Non-DTA Years") was $2,909.
The sum of the tax related to the nonexcess distribution ($3,750) and the tax related to the Non-DTA Years ($2,909) is $6,659. This amount should be included as tax paid on your passive category Form 1116.
The sum of the nonexcess distribution ($25,000) and the excess distribution allocated to the Non-DTA Years ($19,393) is $44,393. This amount should be included as gross income on your passive category Form 1116.
Form 8621, Part V, Line 16e: The amount on Form 8621, Line 16e should be $12,669 ($21,008 - $8,339). This amount should also be included as part of the total for Form 1040, line 16. Check box 3 on line 16 and enter "1291TAX" in the entry space for that box.
Form 8621, Part V, Line 16f: The amount interest on Form 8621, Line 16f should be $4,818. This amount should also be included on Form 1040, Schedule 2, Line 17p.
Form 8960, Line 6 The full amount of the distribution is [potentially] subject to the net investment income tax. The non-excess distribution of $25,000 should flow through to Line 2 of Form 8960 (ordinary dividends). The excess distribution of $75,000 should be included as a positive adjustment on Line 6 of Form 8960.
Section 1291 Computation for Gains on Sales of PFIC Stock
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