PFIC: QEF retro after using M-T-M?


C

cdl

I think I messed up. I invested in a PFIC (AMEX: CEF), skipped any
election the first year (TY 2004) and elected mark-to-market on a Form
8621 in 2005, using the original basis of the 2004 purchase.

Mark-to-market requires tax at reg income rates, not capital gains
rates.

Share price is rising 25% year.

Now I am reviewing the QEF rules, and they seem to be able to save me
about 10% (25% reg income bracket vs. 15% CG). The PFIC publishes
annual statement of $0 CG and $.01/share dividends. Can I undo the
Mark to Market election from last year? Do I have to file amended
returns, and if so, do I redo 2004 as well as 2005?

If you don't know- do you know who does?
My options for advice in my town are very limited.

US Taxpayer
 
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J

Jim Kingdon

Now I am reviewing the QEF rules, and they seem to be able to save me
about 10% (25% reg income bracket vs. 15% CG).
Does anyone know anything about this? I'm guessing one of the
investment web sites or newsgroups is more likely to have people who
know about it, more so than general tax preparers. This seems a
little more esoteric than just your run-of-the-mill Schedule D.
 

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