Gyroscopic Investing

Hi everyone. In late summer of this year I bought HLSS in a taxable account. At that time, I did not know that this stock is recognized as PFIC. Sadly the new Turbo Tax '14 does not support it. As a result, I would have to file my return by mail instead of E-filing. Not to mention the need to file form 8621 and select an election which I don't really understand.

My holding of HLSS is only 250 shares with market value around $5K. I collected  $106.20 in dividends. If I sell my entire holding before the year end at loss, do I still have to file form 8621?

Thank you in advance for your feedback.

If you have to file that form (and it sounds like you do), then you have to do a paper return.  It's not Turbo Tax's fault, it has to do with form 8621 not available via e-filing.  I think there's a way to fool Turbotax into factoring the results of that form into your return, so you at least don't have to do the whole return by hand.

This is such a headache that it's a big reason why I got out of GTU in taxable, claimed my loss, and swore never to do that again...

I don't know what the big deal is about the 8621. It's no worse than a lot of other tax forms, in my opinion, and well worth the improved capital gains treatment of GTU and CEF over physical gold or ETFs... assuming I ever have a capital gain in either of those again, of course. :-)

Do a search in this very forum for GTU ... Someone even posted a sample form and info on how to exile with taxact