Anybody here actually file a Form 8621? (GTU)

[chrikenn]

I'm trying to figure out if I want to buy GTU, and the big question I still have is tax consequences.  From 8621 is at http://www.irs.gov/pub/irs-pdf/f8621.pdf.  I understand that you have to check box A in Part I and fill in lines 1a through 2c in Part II.  I also understand that GTU provides a Statement each year (2010's at http://gold-trust.com/PFIC/CGT%20-PFIC% ... 202010.pdf) showing the numbers that you plug into Form 8621.

For every year that a GTU statement exists, it looks like Form 8621 would just contain zeros, line 2c would be a zero, and no taxes would be owed unless you sold shares.

Is that accurate?  Is it really that simple?  Check box A, plug a bunch of zeros in to lines 1a - 2c, and include the form with your tax return?

Assuming all that is true, what about when you sell?  Do you have to include any additional forms that year, or do you just list GTU along with everything else on the 1099-B that is subject to 15% LTCG rates?

If anybody has actually researched this and done this, I would be curious to know if my impression is correct.  Seems simple.  But I know things are never as easy as they seem when you are dealing with the IRS.

[steve]

It is simple, just send in the completed paper work every year, Form 8621 along with updated attachement which really just keeps a log of the shares you own, the PFIC statement for US tax payer and that it. No additional forms need to be filed if you sell any. It should be listed like any other sale on 1099-B.
I believe that the election to treat as a QEF in box A only needs to be filed the first year
A QEF election applies to the taxable year for which it is made and all subsequent taxable years unless revoked. Part 2 on form 8621 does need to be filled out every year along with updated attachment and annual PFIC statement to be sent in with your taxes.
The drawbacks are: A few minutes filling out some paper work and you can't E File.

[chrikenn]

Thanks, Steve.  Definitely seems easy enough.  Now I just have to decide if I'm ready to give up e-filing!  I really wonder why Turbotax or some other product hasn't incorporated Form 8621 yet.

[AdamA]

Do you need to fill out this form every year if you hold GTU in a Roth IRA?