US / Canada Tax Advice (FATCA) - Canadian with TN for US Wrk

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.

Moderator: Mark T Serbinski CA CPA

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tmlinfinity
Posts: 4
Joined: Wed Sep 24, 2014 8:13 pm

US / Canada Tax Advice (FATCA) - Canadian with TN for US Wrk

Post by tmlinfinity »

Hello,

I am really hoping someone could help me out here.

I have been reading through forums and initially thought things would be straight forward but am growing more nervous the more I read especially about things like FBAR and FATCA.

Situation:
I am a Canadian citizen who owns a house here in Ontario and plan on getting married next year (my fiancée / soon to be wife will remain a Canadian citizen and will still work in Canada).

I have financial ties in Canada including investment accounts (Stocks, Mutual Funds), TFSAs, RRSPs and your regular bank accounts.

I am contemplating accepting a job in the US for which I will be commuting there weekly (Mon to Thurs) to work as a full time employee under TN Status.

************************

I believe I will be considered a Non-Resident Alien as long as I stay under the limits for # of days in the US and file the form for Closer Connection with my US Tax return but what tax consequences do I face leaving things as is?

E.g. keeping the house, keeping all my Canadian financial accounts...

01.
I have read that the TFSA and any capital gains are considered taxable in the US and that'd I'd have to file a form with an EIN #.
Yet I've also read other posts that state the Closer Connection form could exempt one from paying US taxes on capital gains achieved from Canadian Investments such as Mutual Funds and TFSAs etc...
Which is true?

02.
With regards to FATCA, do I need to report all my Canadian holdings?
Also, if I plan on selling my house in Canada and moving to a new house (still within Ontario), will the capital gains made on the house be taxable by the US even if I'm a non-resident alien?


Please help. I'm getting quite stressed and am considering an initial consultation with Serbinski.

Thanks so much.
tmlinfinity
Posts: 4
Joined: Wed Sep 24, 2014 8:13 pm

Post by tmlinfinity »

I think I found the answer to RRSPs and TFSAs per the agreement between CA and US where they do not need to be reported as part of FATCA.

http://www.fin.gc.ca/n14/14-018-eng.asp
nelsona
Posts: 18314
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Post by nelsona »

Incorrect. The page you are looking at is for CDn financial institution reporting and mandatory withholding of US tax. It does not apply to US taxpayer's obligations under FATCA, FinCEN, or any thing else.

If you become a US tax resident, or if you elect to file a 1040 as a US tax resident, you will be subject to foreign account reporting, like FBAR, 3520, 8891, 8938, FinCEN, PFIC, etc, just like any other US citizen holding foreign assets.

There are several threads on these topics.

So, the oonly way to avoid these is, as you say, to remain a CDn tax resident AND a US non-resident, by the treaty rules on residence.

Your other questions have nothing to do with FATCA, they are simple income tax issues.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing :D
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