hoihoi wrote: ↑Thu Mar 16, 2023 12:15 pm
Hi all,
With the whole IBKR Account transfer commotion, I will probably transfer my account to IBKR Japan.
I'm just concerned about PFIC Rules - does this only apply to what you invest in or the broker you use?
For example, I only buy US Stocks/ETFs with IBKR. Is PFIC triggered when I use IBKR Japan (foreign broker) or when I buy foreign assets with IBKR Japan? I believe it is the latter, but I want to check in with someone here.
I know it's a basic question, so I appreciate your patience in advance.
IBSJ is the new acronym it seems for IBKR japan. Only one unified account type.
It is a Japanese brokerage. Holding US ETFs (US Domiciled that is) should be fine if IBSJ lets you. Japanese brokerages tradition do not due to onerous regulations, but IBSJ has said they will. (They have
no obligation to)
A US Domiciled stock or ETF should be fine. -> NOT PFIC
A Japanese company like Softbank (not the phone one), or Orico or Emaxis Slim S&P500 -> PFIC.
(Note that identifying a PFIC is the responsibility of the trader, not the company or apparently the US government. So be careful of holding Japanese stock with too many foreign holdings. Probably no trading houses, etc...)
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The danger is that they decide the paperwork for Americans to hold us position aboard is too much, and restrict purchases or force sales. I do not want to be a doomsayer, but I think all Americans should work toward a plan B.
