Canada Deemed Disposition of mutual funds held in a US non-r

[nakubo.1974]

Thank you in advance for your assistance. I am a married Canadian citizen and my entire family immigrated to the US in 2013. For 2013, I am filing a dual-status MFS return because it is more advantageous than filing a full-year joint return (details in my other post at http://forums.serbinski.com/viewtopic.php?t=8223).

I have mutual funds held in a US non-retirement account. For Canada tax purposes, I am filing T1161 and T1143 (capital gains on both funds I own).

For my US taxes, I would like to step up the cost basis. Therefore, I am completing Form 8833 pursuant to Rev. Proc. 2010-19.
1) Should I use Section 4.01 or Section 4.02. Is the deemed disposition considered taxable by the United States since capital gains are generally not taxable to non-residents?
2) I entered "Canada" and "XIII(7)" in line 1.
3) What should I enter in line 2 (List the Internal Revenue Code provision(s) overruled or modified by the treaty-based return position)?
4) I entered "N/A" in line 3. Should I enter the name and address of the US mutual fund company?
5) I entered "N/A" in line 4.
6) I checked "No" in line 5.
7) I will mention Rev. Proc. 2010-19 and the Section # along with other pertinent details (mutual fund symbol and # of shares, fair market value, etc.) in line 6. I will also attach Canada form T1243.
8) Do I need to attach the Canada T1 or Schedule 3?

[nelsona]

you are electing under 4.02; only real property in US would be under 4.01.
You do not attach T1's etc. Only the deemed disposition form, to prove that you didn't have an overall deemed loss.

[nakubo.1974]

nelsona, you are awesome! Thank you very much for all your posts on this forum.

Do I need to enter anything on line 2 of Form 8833?

[nelsona]

I don't bother