I am putting together form 8621 for a mutual fund held in my TFSA.
1. Can I make a Mark to Market election if the fund paid out dividends?
2. Where do I declare the Dividends if I make the Mark to Market Election? Do I just fill out part IV of the 8621?
Because there is no place in part IV for dividends makes me think that I can't do a Mark to Market election.
8621 PFIC TFSA Dividend Mutual Fund
Moderator: Mark T Serbinski CA CPA
Others will chime in, but the dividends would be reported as income on your 1040 in the normal way. mark-to-market involves your holdings, not the dividends they generated. Those are already taken care of on schedule B.
That is how I interpret it, anyways.
That is how I interpret it, anyways.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing
That's how I did it, back before I dumped my PFICs. The only issue I would think would be, is if you used the dividends to purchase more shares of the PFIC. Each purchase of the PFIC, even automatic reinvestment, is a separate lot of the stock, and requires a separate 8621 for that lot. If you had automatic quarterly reinvestment, that would be a lot of forms.
nelsona, no I'm not absolutely sure. Fortunately, I avoided that precise situation. I did have multiple lots of a single PFIC (a couple of them in fact), though just as investments, not in a TSFA. I always treated these as separate investments, with separate 8621s. And I only had them for two tax years; after the first, when I realized what a problem PFICs would be, I sold them in the second year.
In the US (we were there 34 years), we always used FIFO for lot identification. I am not sure if the US allows the use of average cost basis, and it would certainly make a mess on their forms where you need to specify purchase dates. However, I think Canada requires it.
In the US (we were there 34 years), we always used FIFO for lot identification. I am not sure if the US allows the use of average cost basis, and it would certainly make a mess on their forms where you need to specify purchase dates. However, I think Canada requires it.
I had reinvest dividends on several mutual funds. This is in a TFSA so there is no FIFo tracking or any kind of real statement other then manually tracking the shares in a spreadsheet myself.
I was not going to separate them. I sold all shares at the same time and was going to enter the sale FMV (line 13a) and the adjusted basis (cost) (line 13b).
I wish I had switched funds a month earlier in December 2012 so the old gains wouldn't be taxable when I became a US resident in 2013.
I was not going to separate them. I sold all shares at the same time and was going to enter the sale FMV (line 13a) and the adjusted basis (cost) (line 13b).
I wish I had switched funds a month earlier in December 2012 so the old gains wouldn't be taxable when I became a US resident in 2013.