Canada Mutual Fund vs. 8621 Urgent, need help !!

[gogo]

I have form 8621 questions.
I am Canadian and live in US with greencard
I have one mutual fund accounts consist with two mutual funds for years, I never know it should report 8621 until we need to report foreign accounts ( I did it). This two mutual funds never distribute Div/Int for years.

If I decide fill out 8621 and do the market to market election 2011, then I put (5a) comes from the value of the fund that's on my year-end statement.; put adjusted basis (5b),=book value ; if I have a gain ? Where should I put gain in 1040? How about loss ? some say first year of loss cannot against regular income, I am not sure if that is true ?, Now, if first year is gain, and second year is loss, where do I show this loss in 1040? ( do I treat as 1099b?)

For the second year (2012) the adjusted basis 5(b) will be copy form my 2011 5(a), right?

If I decide to sold this mutual fund in year 2012, there is the confused part:
. I think I will receive
1) NR4 that withhold about 25% gross income form sale mutual fund to remitted to revenue Canada; since mutual fund company already withhold tax, do I still need to file Non resident tax for this ?

2) Mutual fund company will still mail me 1099b to IRS & me .-since I will report this sell in the regular income and pay the tax on it on form 8621. For 1099b, Can I put the final process amount and cost in the same amount. so it won't double tax me
can you answer this question to me ?