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Unit Trusts & Expats – What you need to know

Tax advice – not financial advice

There are many ways you can invest your money. We are not investment advisors, but we are tax preparers, and just like we won’t wash your car, we will also not provide investment advice as that is outside of our core competency. However, we will provide you with information as to how your investments will be treated by Uncle Sam for the purposes of tax reporting.

Although not the same as a mutual fund in investment terms, for the purpose of the IRS you can think of a Unit Trust as a mutual fund. Similarly, a non-U.S. mutual fund (where most unit trusts lie) – would be subject to the same reporting requirements as a non-U.S. mutual fund — namely PFIC regime.

For simplicity sake – any non-U.S. pooled investment would be subject to PFIC reporting requirements. Similar to a mutual fund, a unit trust fund is an investment by a group – which own the assets underlying the trust.

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