Form 8621, Deemed disposition, and Capital loss

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laoci
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Joined: Tue Feb 21, 2012 12:38 pm

Form 8621, Deemed disposition, and Capital loss

Post by laoci »

Hi all - I'm trying to determine if I have to fill out this horrendous Form 8621.
I'm a Canadian citizen residing in the US. I had a deemed disposition of property with a Capital loss in 2011 as I had (and still have - though probably not for much longer) mutual funds in Canada.

I've read about and tried to understand QEF and Mark-to-market, but it's unclear whether either of these options are available or necessary in my case.

Thanks!
JGCA
Posts: 754
Joined: Thu Nov 18, 2010 3:05 pm
Location: Montreal, QC Canada

Post by JGCA »

Any asset held in teh year has to be reported even if by end of year you sold it at a loss or gain. Which method you chose depends it could be either one the one that's best for you in minimizing tax is teh one you go with and follow.
JG
nelsona
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Post by nelsona »

And what was the "deemed disposition". US doesn;t have deemed dispositions.
After 20 years, I am severely cutting back on responses. Do not ask specifically for my help. There are a few others on this board that can answer most questions. All the best
JGCA
Posts: 754
Joined: Thu Nov 18, 2010 3:05 pm
Location: Montreal, QC Canada

Post by JGCA »

Probably the allocated cap gains or losses from the mutuals that your are picking up some people call them deemed others call them Phantom income you never got it but your picking it up, thats what I figured it was.
JG
nelsona
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Post by nelsona »

Yes, but that is meaningless in the US context.
After 20 years, I am severely cutting back on responses. Do not ask specifically for my help. There are a few others on this board that can answer most questions. All the best
JGCA
Posts: 754
Joined: Thu Nov 18, 2010 3:05 pm
Location: Montreal, QC Canada

Post by JGCA »

Sure is
JG
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