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<p>[QUOTE=&quot;Cloudsweeper99, post: 1112968, member: 3011&quot;]If you own CEF in a taxable account, there is the added complication that it is taxed as a PFIC. You can get capital gain rate if you file Form 8621 in the first year you own the shares and make the &quot;QEF&quot; election.&nbsp; If you don&#039;t, the gains will be taxed as ordinary income and allocated back to each year you owned shares sold at a gain.&nbsp; Then interest is charged on the gains attributed to prior years but not paid until the sale up to the point where you have to pay 100% of your gain in taxes and interest. </p><p><br /></p><p>Now, maybe the IRS will catch you and maybe they won&#039;t.&nbsp; But, personally, I wouldn&#039;t own CEF or any other PFIC in a taxable account.</p><p><br /></p><p>Edit:&nbsp; Keep in mind that I am not a tax professional, only an investor with some experience with PFICs, so don&#039;t take this as tax advice.&nbsp; Your accountant may differ with this opinion.[/QUOTE]</p><p><br /></p>

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