Question
Bruce, a U.S. citizen, owns a 3% interest in a passive foreign investment company (PFIC) and during calendar year 2022, Bruce receives a distribution of
Bruce, a U.S. citizen, owns a 3% interest in a passive foreign investment company ("PFIC") and during calendar year 2022, Bruce receives a distribution of $100,000. Previous distributions received by Bruce were $70,000 in 2019, $80,000 in 2020, and $95,000 in 2021. With respect to the 2022 distribution, Bruce will be subject to the onerous PFIC taxation rules because he has received an excess distribution.
True
False
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Managerial Accounting
Authors: John J Wild, Ken W. Shaw, Barbara Chiappetta
7th edition
1260482936, 978-1260482935
