Hi all - I wanted to clarify how different kinds of holdings in my RESP are treated for IRS purposes. I'm a USC living in Canada with an RESP.
Basically, I want to ask if I'm managing these 3 holdings correctly:
1) Canadian Mutual Funds - I am claiming gains/losses in these yearly with an 8621, Mark-to-Market, for each individual mutual fund.
2) Stocks - I'm only claiming gains/losses once these are sold. So, even though my 3520 may show an increase/decrease in value based on the change in value of these, I'm not claiming it on my 1040 until they are actually sold.
3) Cash - I'm not claiming gains/losses based on exchange rate changes, until the money is withdrawn (that is, when my child goes to university).
Is this right? Any input on these would be great - thanks in advance!
IRS assessment of different types of RESP holdings
Moderator: Mark T Serbinski CA CPA
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IRS assessment of different types of RESP holdings
Not a professional opinion.
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- Posts: 245
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Re: IRS assessment of different types of RESP holdings
Just trying a bump for this post … do I have this right?
Not a professional opinion.
Re: IRS assessment of different types of RESP holdings
Have you figured it out? I always treated mutual funds the same as stocks. I guess i got it wrong
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- Posts: 245
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Re: IRS assessment of different types of RESP holdings
I don't know for sure. I'm reasonably confident about my treatment of the mutual funds and stocks, but not too much about cash (or a money market).
Not a professional opinion.
Re: IRS assessment of different types of RESP holdings
if the mutual fund is 100% invested in US, it wont be considered as PFIC, so no need to fill in 8621?
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- Posts: 245
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Re: IRS assessment of different types of RESP holdings
Hm, I don't know … I just assume that if the MF is Cdn-based, I probably have to do the 8621. But I don't really know - I'm just being conservative and figure that filling it out is less hassle than the potential headache of making a mistake.
Not a professional opinion.