#### § 1.1291-0 Treatment of shareholders of certain passive foreign investment companies; table of contents.

This section contains a listing of the headings for §§ 1.1291-1, 1.1291-9, and 1.1291-10.

## § 1.1291-1 Taxation of U.S. persons that are shareholders of section 1291 funds.

(a) through (b)(2)(i) [Reserved]

(ii) Pedigreed QEF.

(b)(2)(iii) and (iv) [Reserved]

(v) Section 1291 fund.

(3) through (6) [Reserved]

(7) Shareholder.

(8) Indirect shareholder.

(i) In general.

(ii) Ownership through a corporation.

(A) Ownership through a non-PFIC foreign corporation.

(B) Ownership through a PFIC.

(C) Ownership through a domestic corporation.

(iii) Ownership through pass-through entities.

(A) Partnerships.

(B) S Corporations.

(C) Estates and nongrantor trusts.

(D) Grantor trusts.

(iv) Successive application.

(v) Examples.

(A) Example 1.

(*1*) Facts.

(*2*) Results.

(*i*) Treatment of DC.

(*ii*) Treatment of A.

(B) Example 2.

(*1*) Facts.

(*2*) Results.

(C) Example 3.

(*1*) Facts.

(*2*) Results.

(D) Example 4.

(*1*) Facts.

(*2*) Results.

(c) Coordination with other PFIC rules.

(1) and (2) [Reserved]

(3) Coordination with section 1296: Distributions and dispositions.

(4) Coordination with mark to market rules under chapter 1 of the Internal Revenue Code other than section 1296.

(i) In general.

(ii) Coordination rule.

(d) [Reserved]

(e) Exempt organization as shareholder.

(1) In general.

(2) Ownership through certain tax-exempt organizations and accounts.

(f) through (i) [Reserved]

(j) Applicability dates.

## § 1.1291-9 Deemed dividend election.

(a) Deemed dividend election.

(1) In general.

(2) Post-1986 earnings and profits defined.

(i) In general.

(ii) Pro rata share of post-1986 earnings and profits attributable to shareholder's stock.

(A) In general.

(B) Reduction for previously taxed amounts.

(b) Who may make the election.

(c) Time for making the election.

(d) Manner of making the election.

(1) In general.

(2) Attachment to Form 8621.

(e) Qualification date.

(1) In general.

(2) Elections made after March 31, 1995, and before January 27, 1997.

(i) In general.

(ii) Exception.

(3) Examples.

(f) Adjustment to basis.

(g) Treatment of holding period.

(h) Coordination with section 959(e).

(i) Election inapplicable to shareholder of former PFIC.

(1) [Reserved]

(2) Former PFIC.

(j) Definitions.

(1) Passive foreign investment company (PFIC).

(2) Types of PFICs.

(i) Qualified electing fund (QEF).

(ii) Pedigreed QEF.

(iii) Unpedigreed QEF.

(iv) Former PFIC.

(3) Shareholder.

(k) Effective/applicability dates.

## § 1.1291-10 Deemed sale election.

(a) Deemed sale election.

(b) Who may make the election.

(c) Time for making the election.

(d) Manner of making the election.

(e) Qualification date.

(1) In general.

(2) Elections made after March 31, 1995, and before January 27, 1997.

(i) In general.

(ii) Exception.

(f) Adjustments to basis.

(1) In general.

(2) Adjustment to basis for section 1293 inclusion with respect to deemed sale election made after March 31, 1995, and before January 27, 1997.

(g) Treatment of holding period.

(h) Election inapplicable to shareholder of former PFIC.

(i) Effective date.

[T.D. 8701, 61 FR 68151, Dec. 27, 1996, as amended by T.D. 8750, 63 FR 13, Jan. 2, 1998; T.D. 9123, 69 FR 24073, May 3, 2004; T.D. 9806, 81 FR 95465, Dec. 28, 2016; T.D. 9936, 86 FR 4555, Jan. 15, 2021]