PFIC reporting on Cdn domiciled Mutual Funds

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kylewkemp
Posts: 6
Joined: Mon Jan 26, 2015 1:05 am
Location: California

Post by kylewkemp »

Hi,

I am going to make a mark-to-market election for some Canadian mutual funds (non-registered). I've attempted to account for the reinvested dividends in the adjusted basis in section Part IV line 10 b) to get the proper gain. Does anyone know if this is the proper way of doing this? I read in another forum someone suggested that a different forum is required for each monthly dividend reinvestment.

Also n Part I line 2 do we have to list the dates of dividend reinvestment?
Kyle
MGeorge
Posts: 313
Joined: Fri Jun 22, 2012 9:23 am
Location: Canada

Post by MGeorge »

Hello,

It sounds like you've got it right. The reinvested dividends are as if you bought more units. Don't forget to report the dividend income on sch. B. as an ordinary dividend.

Regarding Part I, ln 2 - I've never bothered with this. I just put the first date in the year when I bought units. I'd be tempted to right "multiple" or "biweekly" but I use TaxACT and it only accepts a date.
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MGeorge is neither an accounting nor taxation professional.
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