I have finally got to the point that all my pfics are on a mtm basis for 2014. I just want to confirm I am handling the capital gains distributions (and dividends correctly) as I am not excited about the outcome.
Each year I set the opening adjusted cost to the market value at the previous yearend. I then add income AND capital gains distributions to the opening value at the same time reporting them as ordinary income on schedule B (rather than as capital gains distributions on D ).
In 2014 I had a few large capital gains distributions which resulted in a loss on a mtm basis. Since this was the first year they were on an MTM basis I have no unreversed inclusions to allow me to take advantage of the loss nor will I be able to use this loss to offset future gains.
TRUE? Also presume there are no excess distributions on income under MTM
capital gains distrib. on cdn mutual funds (pfic-MTM)
Moderator: Mark T Serbinski CA CPA