reporting cdn mutual funds on sched d

[guy]

I have a cdn mutual fund that made $2 capital gains last year according to the T3 I received. Unfortunately, I have no other info about the fund available. I'm going to try to phone BMO tomorrow and see if they can give out any info but even if that is the case I'm not sure how to it applied to schedule D in terms of sales price, date aquired, cost, etc. I guess I should try to fill it in the best I can.

[nelsona]

Distributions have no cost basis when received. They are considered to ahve been sold and bought back.

They are considered long-term cap gains however. It is unlikley that it will push you into the next tax bracket.

http://www.irs.gov/publications/p564/ar02.html#d0e345

You do not have to bother with any of the forms mentionned.

[guy]

mutual funds are considered to be distributions that are reinvested. So then every year I'll have to pay tax on the same money? How can I claim credit when it is not taxed in canada? can I claim the basis as an expense?

just got pub 564 might have to file for an extension

[guy]

I think I get it. One of my mutual funds sold itself and re-invested so that is income but my other one just grew somewhat but didn't sell so that's not income.

[nelsona]

How can I claim credit when it is not taxed in canada?

If the distribution was made before you entered US. it would be taxed in Canada.

If it happened after living in US, you won't be taxed in Canada: you should have paid any tax on your departure return at that is it.

The cost basis will be adjusted by whatever income you report year-by-year, so when you sell something for $20 that you bought for $10, had $2 of distributions in previous years, you only report $8 when you sell, since you would have previously reported the $2.

The taxable gains (reported on a T3) have nothing to do with its market value, but rather if it made internal profits during the year.