By i963208, April 12, 2012

This is a discussion topic or guest posting submitted by a Stock Gumshoe reader. The content has not been edited or reviewed by Stock Gumshoe, and any opinions expressed are those of the author alone.

Travis, This question is in regards to Sandstorm Gold. I don’t understand exactly what a PFIC is. Am I responsible for taxes on money that I have not even seen yet. Please explain or direct me to a website that explains this concept more clearly. I have quite a few shares and don’t want to be caught off guard with a huge tax bill.

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1 Comment on " PFIC"


Travis Johnson, Stock Gumshoe
PFIC’s are Passive Foreign Investment Companies — the reporting and tax requirements were set up to prevent passive pass-through foreign corporations that folks used as tax shelters, but they also get applied to foreign mutual funds and some REITs and royalty-type foreign companies. Many companies with US investors declare their PFIC status, making a declaration of their opinion based on their understanding of IRS rules, but it’s apparently very complex and the specific measures are subject to some interpretation. Franco-Nevada, for example, declared that yes, they were a PFIC last year but that they do not expect to be one… Read more »