Selling funds whose cost basis was adjusted on Form 8833

[nakubo.1974]

I am a Canadian citizen who immigrated to the US in 2013. I hold mutual funds in a US non-retirement account (these were purchased during a prior stay in the US when I was a non-immigrant but taxed as a resident). I filed Form 8833 last year to take an adjusted cost basis equal to fair market value as of the date of the deemed disposition under Canada’s deemed disposition rules (http://forums.serbinski.com/viewtopic.p ... highlight=).

I sold the mutual fund holdings in 2014 and received a 1099-B from the mutual fund company. The 1099-B breaks down the sale into short-term transactions with basis reported to IRS, long-term gains with basis reported to IRS, and long-term gains with basis not reported to IRS.

1) Can I use the adjusted cost basis that I reported on Form 8833 last year and ignore the cost basis reported by the mutual fund company to the IRS?
2) Can I still categorize the long-term gains as such or is everything considered short-term since I sold all the holdings within less than a year after moving to the US in 2013?

Thank you all for your help.

[nelsona]

1. you would use the basis determined in the rev proc.
2. that cap gains "age" is based on your original holding period, not the deemed sale.