Hello,
My client's K-1 reports PFIC activity on Line 11, Box code I. PFIC activity is listed in three rows as PFIC Long Term Loss, PFIC MTM Loss and PFIC Short Term Gain. The net results in a very large loss. The K-1 does not provide any other disclosure. The K-1 is issued by domestic partnership.
I am unsure as to how to report it on my client's return. I don't think it should be reported as Other Income on Schedule 1, 1040; don't know if I need to complete form 8621 due to absence of PFIC information. I feel that reporting it on Form 8949/Schedule D as capital loss is most appropriate, however wanted to ask the forum, to see if anyone else dealt with similar issue.
Thanks in advance.
Art