Adjusted basis for mark-to-market election on 8621

[sarahp]

Hi all,

I'm slogging my way through forms 8621, 3520, and 3520-A for a TFSA in which I (foolishly, I now know) purchased a mutual fund this year. I'm trying to determine whether QEF or mark-to-market makes more sense, and am having trouble with some of the instructions for mark-to-market. Has anyone figured out what they mean by the adjusted basis? (This is Part III, line 5b.) I purchased the fund this year and then had distributions (dividends and interest) automatically reinvested. Is the adjusted basis the sum of the purchase price and the reinvested distributions?

Thanks,
Sarah

[cliffie75]

I wish I could help you on this. Another poster suggested if you use mark-to-market, all you need do is look at your Year End Statement, and put the book value in 5b... but if you result with a loss and this is your first year filing - does that loss count against any other income ? (i.e. no unreversed inclusion available) If they are all losses and this is the first year reporting, maybe we should opt for QEF ?