DAeparture date from Canada?

nelsona · Post by **nelsona** » Tue Apr 22, 2014 11:45 am

You need to get rid of TFSA, since it is taxable in US as well as having reporting issues. You can always replenish it if you return.

You can keep the RRSP (by filing 8891), most peaple do because handling them is simple. although you should probably think of cashing some of it in while you are not working, as you will pay very little tax by filing a special Cdn return (217).

And you MUST tell your bank, RRSP, etc in canada that you are US resident.

Once again, in 2012 you were not resident oif US, so you have nothing, Nothing, NOTHING to report. Just like the 7 billion other people in this world who don't have toi report their assets to IRS.

Did you do PFIC for your TFSA?

echo · Post by **echo** » Tue Apr 22, 2014 11:58 am

Hi Nelsona,

Yes Im going to close my TFSA soon. When I was filing 2013 return two weeks ago I realized there is no point keeping it. So much more paper work and the interest is even taxable.

Yes I told my banks in Canada that I moved.

My TFSA is just a savings account. I included the interest income when filing 2013 return to IRS. Whats this PFIC you are talking about?

Thanks.

nelsona · Post by **nelsona** » Tue Apr 22, 2014 12:06 pm

PFIC applies to any mutual funds or ETFs you hold in a non-RRSP. Form 8621. If your only investment account in Canada is your RRSP, then you don't have to worry.

Your TFSA is considered a trust. Since you still have it, you will need to file a 3520 again next spring, like you did this spring.

echo · Post by **echo** » Tue Apr 22, 2014 12:15 pm

I guess I don't need to file PFIC then. I will file 3520/3520a one more time for 2014 tax year then I'm good. I'm not sure I even should file 3520 for my TFSA because it's just a savings account with ING, but I did for 2013 just to be safe.

Again thanks for your help!