How to report sale of canadian growth fund

mcaps · Post by **mcaps** » Fri Dec 05, 2014 11:20 pm

Hi,
I have been living in the USA for about 15yrs and sold a fund that I bought about 20yrs ago. It was not that much back then, fast forward 20+ years. The FBAR minimum kicked in.
I sold the fund this year, 2014. I would like to know which forms I need to fill out. Or if anyone can point me in the right direction. The amount is just above the minimum required to file the FBAR is that matters.

thank you.

JGCA · Post by **JGCA** » Sat Dec 06, 2014 12:34 pm

THe FBAR mininum threshold of $10K is simply a reporting requirement that has to be filed, you now have sold this fund in 2014 you now have to report the gain on the sale since your original cost was low you have a capital gain to report on your 1040 on this sale also.

mcaps · Post by **mcaps** » Sat Dec 06, 2014 5:48 pm

I keep hearing about the 8621, would this apply in this situation? I briefly read it and it seems that the exception applies since it is below the $25K aggregate value. The fund has not been touched in over 15 years if that makes a difference and FBARs have been filed accordingly.

I am familiar with filing/reporting capital gains on the 1040, would this be the same situation? where/how would I report that it was/is a foreign fund?

I have more questions, I just don't want to 'overload' the system.

I would like to search for professional help but not sure what I should look for. I have called a few CPAs and they are not aware of the requirements.

thank you again.

JGCA · Post by **JGCA** » Sat Dec 06, 2014 6:34 pm

Yes Part 1 does have an exemption of $ 25K or $50K if you file a joint return for all PFIC funds if they are below this value you do not have to report the annual information in Part 1 of from 8621.

If you are making elections you still must file Part 11

If you have income you still must file Part 111

Part 1 only exempths you from the annual filing information component as contained inReg 1.1298-1T(c)(2) elections and income still has to be filed.

mcaps · Post by **mcaps** » Sun Dec 07, 2014 11:13 pm

I keep reading the PFIC election section instructions over and over and come to the same conclusion. The PFIC election section has me confused.

What would be the better election to make. Can I just pick one? Out of the # of elections it seems that I would have to provide some evidence of the value of the funds year by year.

Which would I choose if I just want to report the gain (Cash out - Cash in)?? I have statements back to 1999 that show the total amount at the point in time, but I don't have the amount that I initially put in back then. How can I use these statements?

thanks