How to file Canadian Mutual Fund with IRS

khkyau · Post by **khkyau** » Tue Mar 06, 2012 2:14 am

Hi...

I've been doing some reading on how to file Canadian mutual funds with the IRS. As expected, it is very confusing...

Situation: I liquated some Canadian mutual funds with a Canadian broken in the first 1/2 of the year before I move to USA. Now, I want to elect full year resident for 1040 to take advantage on MFJ, std deduction, and overall simpler tax return preparation.

Since I now elect full year residency, I guess I am supposed to report the Cdn mutual fund sales to IRS just as ordinary resident would. Is the form 8621 the correct place to start? Where do I enter the gain or loss of the sale?

Thanks!!

nelsona · Post by **nelsona** » Tue Mar 06, 2012 6:49 am

While you may need to report the existence of your Cdn mutual funds on that forn, since you sold (presumably) all of them, the all the cap gains and losses merely go on your schedule D.

The Cdn tax you paid can be used as a foreign tax credit on fporm 1116 s passive income.