The Motley Fool Discussion Boards Previous Page Financial Planning / Tax Strategies URL:  https://boards.fool.com/foreign-investments-form-8621-18967630.aspx Subject:  Foreign Investments & Form 8621 Date:  4/27/2003  8:27 PM Author:  captbuddha Number:  65195 of 131274 I posted a request for Help/Assistance on the subjectearlier, but got no reply, so i thought i'd try againbut this time make my question easier to understand. I'm confused about what to do in Part Two of Form 8621:"Return by a Shareholder of a Passive Foreign Investment Company or Qualified Fund"I'll just explain the facts Re. one of the foreign co.'s:The co. is:(NAT) Nordic American Tanker Shipping LimitedBought 100 shares on May 9, 2002' at \$14.10 per shareHeld 235 Days in 2002'Received only two dividend distributions = \$65Form 8621 Part Two(1a)I found it easy to compute & come up with the amountof the Pro Rata Share of the Ordinary Earnings ofthe QEF needed for line 1a Its line 2a that is confusing to me! "Enter your pro rata share of the total net capital" ______To compute/find the amount for line 2a the instructionsin "PFIC Annual Information Statement" that was sent too me by the foreign companies, states: The total amount of the distributionsexceeded the sum of Nordic American's earnings & profitsfor the Taxable Year & Nordic Americans's earnings & profitsaccumulated in prior years. (Here comes the part where i get confused). Accordingly, 47.01% of each distribution is a dividend, and 52.99% of each distribution is a return of capital.Now; the total amount of distributions that i receivedfrom Nordic in 2002' was two payments = \$65So; to get the figure i need for the pro rata share of thetotal net capital gains of the QEF on line 2a of theForm 8621 -- I need to do what??Should i do the following:\$65 X 47.01% = 30.5565 X 52.99% = 16.191889Is 16.19 the pro rata share of the total net capital gain of the QEF??Or is it:\$65 X 52.99% of each distribution is a return of capital= 34.4435Is 34.44 the pro rata share of the total netcapital gain of the QEF??**** The instructions (too me) seem to be saying twothings at once in that last sentance; i'm not sure how to come up with that pro rata share of capital gains!!!!CAN ANYBODY HELP??????? Thanks Capt! Copyright 1996-2020 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us