Treasury Regulations · 26 CFR
§ 1.1291-0. Treatment of shareholders of certain passive foreign investment companies; table of contents.
Regulation text, no changes From the eCFR, current as of October 15, 2026. The eCFR is an authoritative but unofficial editorial compilation of the Code of Federal Regulations; the official text is the annual CFR on govinfo. Compare it with this section on ecfr.gov (external site) or the official annual CFR on govinfo (external site).
Regulation under 26 U.S.C. § 1291
Cite as 26 CFR § 1.1291-0
At a glance
Read from the text and its source citation. Not part of the regulation.
- Status
- In the current eCFR
- Issued
- December 27, 1996 by T.D. 8701
- Last amended
- January 15, 2021 by T.D. 9936
- Issued under
- 26 U.S.C. § 1291
- Length
- 478 words · about 2 min to read
- Cross-references
- cites 4 Code sections and 3 regulations; cited by 0
This section contains a listing of the headings for §§ 1.1291-1, 1.1291-9, and 1.1291-10.
(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]
Cross-references
Computed from the citations in the text of 26 CFR.
Code sections it cites
- § 1291 Interest on tax deferral
- § 1296 Election of mark to market for marketable stock
- § 959 Exclusion from gross income of previously taxed earnings and profits
- § 1293 Current taxation of income from qualified electing funds
Regulations it cites
Amendment history
From the source citation at the end of the section, newest first. T.D. is a Treasury decision; FR is the Federal Register.
- Amended by T.D. 9936 (86 FR 4555)
- Amended by T.D. 9806 (81 FR 95465)
- Amended by T.D. 9123 (69 FR 24073)
- Amended by T.D. 8750 (63 FR 13)
- Issued by T.D. 8701 (61 FR 68151)
Where it sits in 26 CFR
- Subchapter A Income tax
- Part 1 Income taxes
- Special Rules for Determining Capital Gains and Losses
Nearby sections
- § 1.1286-1 Tax treatment of certain stripped bonds and stripped coupons.
- § 1.1286-2 Stripped inflation-protected debt instruments.
- § 1.1287-1 Denial of capital gains treatment for gains on registration-required obligations not in registered form.
- § 1.1288-1 Adjustment of applicable Federal rate for tax-exempt obligations.
- § 1.1291-0 Treatment of shareholders of certain passive foreign investment companies; table of contents.
- § 1.1291-1 Taxation of U.S. persons that are shareholders of section 1291 funds.
- § 1.1291-9 Deemed dividend election.
- § 1.1291-10 Deemed sale election.
- § 1.1293-0 Table of contents.