EdgePoint Wealth Management has announced that it will make tax reporting information available to assist investors who are classified as "US persons" under US tax law with their tax filing obligations.
With most Canadian mutual funds subject to the potentially punitive US Passive Foreign Investment Company rules, providing this type of reporting will allow impacted US tax filers holding EdgePoint Portfolios, at their option, to elect to treat their EdgePoint investment as a Qualified Electing Fund (QEF) on their US tax returns. The QEF election permits taxpayers to retain the benefits of the lower tax rate on long-term capital gains and avoid interest penalties.
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For the 2013 tax year and going forward, EdgePoint will provide personalized PFIC Annual Information Statements upon request prior to the April 2014 US tax reporting deadline for individuals. These statements will be available for all funds and series offered by EdgePoint.
Patrick Farmer, CEO of EdgePoint, said: "Generating this type of tax reporting is the right thing to do for investors as without it, those impacted could be subject to a punitive tax treatment."
Advisors can contact info@edgepointwealth.com to request PFIC Annual Information Statements for their clients.
PFIC rules are complex and it is recommended that affected U.S. persons consult with a tax professional.
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