Selling funds whose cost basis was adjusted on Form 8833

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nakubo.1974
Posts: 32
Joined: Sun Feb 16, 2014 1:01 am

Selling funds whose cost basis was adjusted on Form 8833

Post by 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
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Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Post by 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.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing :D
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