RESP & 8621 questions

This is our main tax information forum which deals with topics concerning Canadians living and working in the U.S., U.S. citizens contemplating working in Canada, and all aspects of Canadian and U.S. income tax and related adminstrative issues.

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rlb
Posts: 139
Joined: Thu Feb 17, 2011 8:51 pm
Location: NB, Canada

Post by rlb »

Oops, EWC, not UWC. Why don't I proofread before posting?
nelsona
Posts: 18314
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Post by nelsona »

Since RESPs are not deemed sold upon departure, their contents cannot have ACB bumped thru move to US.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing :D
MGeorge
Posts: 313
Joined: Fri Jun 22, 2012 9:23 am
Location: Canada

Post by MGeorge »

rlb, That MER difference is a good point - but if you're stuck paying PFIC tax on it EWC could be a much better deal.
Another difference, XIU has 60 holdings EWC as ~90 - but the top 10 holdings are within fractions of a percent of each other.
With EWC, you get qualified dividends and long term capital gain treatment if you hold it long enough.
areefer
Posts: 17
Joined: Thu Mar 10, 2011 5:12 pm

Post by areefer »

I'm still doing a lot of reading/research into this. I have 'newbie' question on definitions:

- distribution - income (dividend, interest, etc.) provided by the mutual fund
- disposition - I assume this in reference when funds are sold - correct?

How are unrealized gains in the FMV of the mutual fund described or referenced in the literature?

I think I understand how it works once a M2M election has been made. I'm still at a loss for how to treat the PFIC for the first year in making that election.
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