Entering T3 data into my 1040

[cfn2007]

I'm a US citizen that now resides in Canada. I just got a T3 for some Canadian iShares ETF units and I'm struggling to figure out how to translate the different income types to my U.S. 1040.

Return of Capital - I understand that this is non-taxable but reduces my cost basis in Canada. Does this also reduce my U.S. cost basis?

Capital Gains - Are these also considered capital gains on my 1040 or are they ordinary income? I know that if they are capital gains, I will use the "re-source" category on my 1116. If they are income, do I use the "passive" or "re-source" category on the 1116?

Eligible Dividends - I assume these are considered "non-qualified dividends" for my 1040?

Also, on a related matter, some of the iShares distribution is paid in cash and some is automatically re-invested in the units. I understand that for Canadian tax purposes, these reinvested distributions raise my cost basis. Do they also raise my cost basis for U.S. taxes?

Thank you!

[nelsona]

You would only "re-source" US-sourced income. Your ishares are Cdn, so they are truly foreign passive income

RoC reduces cost basis, reinvested cap gains distributions increase your cost basis. Same in US.

Unless you are told othrwiae, dividends are non-qualifying.