Got my details of investment statement. Now what.

mcaps · Post by **mcaps** » Mon Feb 09, 2015 11:27 am

So I got my details of investment for a sale of a Canadian mutual fund. I sold the funds in July 2014.
In the statement I see;
>number of shares redeemed
>amount of disposition
>adjusted cost base
>capital gain

Is this just transferring the information into Schedule D or are there any other IRS forms I have fill out?

thanks,

mcaps.

rlb · Post by **rlb** » Mon Feb 09, 2015 11:35 am

You need to have been filing form 8621 each year that you held the Canadian mutual fund. If not you need to file it this year, and take the punitive tax calculation that will result from not bringing it up to market value each year.

Don't forget, also, that you must use the CAD/USD exchange rates in effect separately for each purchase date, and the sale date. (If there were dividends reinvested, you could use an average for the year perhaps.)

You can't use on your US return, the adjusted cost base printed on the Canadian statement, because each purchase has a potentially different US exchange rate.

nelsona may have more direction for you.

rlb · Post by **rlb** » Mon Feb 09, 2015 11:53 am

Oh. Ignore my post. I just noticed that you have been through all this stuff before. Not sure why you are asking again.

mcaps · Post by **mcaps** » Mon Feb 09, 2015 12:53 pm

I still don't understand it. The amount is under the 8621 annual filling requirement, <25k. So I did not have to file the 8621 annually, but a sale was made so from what I understand I have to file the 8621 now.

I just don't know/understand what election type to make. How is the election type determined?

The second part of this equation that makes it complicated is the length of time I have held these, over 20 years. I did not become a USA tax payer until 2001. Would I have to recalculate my initial cost based on this date?

thanks,

mcaps.