Discussion:Treatment of 'Capitalization SICAV'

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Discussion Forum Index --> Tax Questions --> Treatment of 'Capitalization SICAV'


BelgiumResident (talk|edits) said:

20 November 2005
Many european countries have financial product called SICAV's which are similar to mutual funds. Some SICAV's are called 'capitalized' or 'accumulated': they do not distribute any dividends, interests and capital gains but instead keep them which typically results in an increase in the value of their shares.

From a US Fed tax standpoint:

1- years prior to the sale of the SICAV: should anything be reported on US returns? If so, how?

2- in the year of the sale of the SICAV in the long term case: is the SICAV capital gains reported purely as a capital gain in the US? If not, how should it be reported?

Butch (talk|edits) said:

22 November 2005
Interesting question. The first thing that I would do would be to determine if there is a tax treaty with the country in which the income was earned. Second would be to determine if this type of income is even reportable for US purposes. Capital transactions are treated quite differently depending on the countries in question.

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