Closed TFSAs in 2014, are 3520/3520A forms still required?
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Closed TFSAs in 2014, are 3520/3520A forms still required?
For my 2013 return I filed 3520/3520A forms as I had a TFSA.
I closed the TFSA in July 2014, for my 2014 return are 3520/3520A forms still needed as the TFSA existed for part of the year?
I closed the TFSA in July 2014, for my 2014 return are 3520/3520A forms still needed as the TFSA existed for part of the year?
The position that has been adopted is that uinless the bank can specifically say that it was NOT a trust, then it is a trust,
You can have an RRSP that is just a savings account, and it is a trust, both in CRA and IRS definition, so there is precedent.
You can have an RRSP that is just a savings account, and it is a trust, both in CRA and IRS definition, so there is precedent.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing
I’d just like to add that a trust arrangement between an account holder and a financial institution must be stated in writing (i.e. an “express trustâ€). The place where a bank “says†(or, more commonly, “declaresâ€) that a given account is a trust is in the terms of that account (usually given to the account holder when the account is opened, and/or found (often buried) on the institution’s website).
If an account is a trust, its terms will include a form of trust agreement, or declaration of trust, in which it is expressly stated that the institution is appointed trustee for the account holder (using words such as: “We agree to accept the position as trustee of the TFSA . . .â€; “The Trustee . . . agrees to act as trustee of the account on behalf of the holder . . .â€; or We, . . . hereby declare that we accept the trust created between us and the Holder when the Application was signed . . .â€). There must be some form of trust agreement, and, indeed, 3520/3520-A require that that agreement, the “trust instrument†(the document which created the trust) be attached to those forms.
Unless an intention to create a trust is expressly stated within, or appended to, the terms of a given account, that account is not a trust.
If an account is a trust, its terms will include a form of trust agreement, or declaration of trust, in which it is expressly stated that the institution is appointed trustee for the account holder (using words such as: “We agree to accept the position as trustee of the TFSA . . .â€; “The Trustee . . . agrees to act as trustee of the account on behalf of the holder . . .â€; or We, . . . hereby declare that we accept the trust created between us and the Holder when the Application was signed . . .â€). There must be some form of trust agreement, and, indeed, 3520/3520-A require that that agreement, the “trust instrument†(the document which created the trust) be attached to those forms.
Unless an intention to create a trust is expressly stated within, or appended to, the terms of a given account, that account is not a trust.
I have a similar situation where I had a 2012 and 2013 3520/3520A filed.
I closed the account in 2014. Since the account had prior paperwork and existed for a good part of 2014 - do I need to file the 3520/3520A as final returns in 2014 so IRS no longer expects this?
If so, how do I balance it to $0?
I transferred the funds into a simple savings so there is no distribution that should be taxable?
Please help if you can.
I closed the account in 2014. Since the account had prior paperwork and existed for a good part of 2014 - do I need to file the 3520/3520A as final returns in 2014 so IRS no longer expects this?
If so, how do I balance it to $0?
I transferred the funds into a simple savings so there is no distribution that should be taxable?
Please help if you can.
[quote="wlasicn"]I have a similar situation where I had a 2012 and 2013 3520/3520A filed.
I closed the account in 2014. Since the account had prior paperwork and existed for a good part of 2014 - do I need to file the 3520/3520A as final returns in 2014 so IRS no longer expects this?
If so, how do I balance it to $0?
I transferred the funds into a simple savings so there is no distribution that should be taxable?
Please help if you can.[/quote]
Did you ever find out the answer to your question?
If not, does anyone else know the answer? Thanks.
I closed the account in 2014. Since the account had prior paperwork and existed for a good part of 2014 - do I need to file the 3520/3520A as final returns in 2014 so IRS no longer expects this?
If so, how do I balance it to $0?
I transferred the funds into a simple savings so there is no distribution that should be taxable?
Please help if you can.[/quote]
Did you ever find out the answer to your question?
If not, does anyone else know the answer? Thanks.
Hi Subaron,
According to brief guidance from BDO (According to Wikipedia, BDO International is the fifth largest accountancy network in the world), "If the TFSA is not a set-up as a trust there is no filing requirement of form 3520/3520-A. However, the TFSA is not recognized by the IRS; that means the income generated in the TFSA should be declared on the US tax return of the owner."
So, I will personally go by the quoted advice.
Please post if you are able to affirm this info from still another source as opinions may very on the subject.
Thanks,
Taxeve
According to brief guidance from BDO (According to Wikipedia, BDO International is the fifth largest accountancy network in the world), "If the TFSA is not a set-up as a trust there is no filing requirement of form 3520/3520-A. However, the TFSA is not recognized by the IRS; that means the income generated in the TFSA should be declared on the US tax return of the owner."
So, I will personally go by the quoted advice.
Please post if you are able to affirm this info from still another source as opinions may very on the subject.
Thanks,
Taxeve
taxeve, this is what I found and will be going with it.
http://connect.cch.ca/newsletters_Finan ... 3_article3
Btw, TFSA's can be set up as Annuity, Trust or Deposit. Tangerine TFSA Savings account looks like a regular deposit account anyhow.
http://connect.cch.ca/newsletters_Finan ... 3_article3
Btw, TFSA's can be set up as Annuity, Trust or Deposit. Tangerine TFSA Savings account looks like a regular deposit account anyhow.
Just to clarify, just because an account is "not set up as a trust" in canada, does not mean that it is not a foreign grantor trust in US. Cdn financial industry has a diffeent notion of what a trust is.
Absent of a specific statement from the TFSA manager that the TFSA is NOT a trust, one should, in my opinion, (and the opinion of the cch posting above), assume that it is.
Absent of a specific statement from the TFSA manager that the TFSA is NOT a trust, one should, in my opinion, (and the opinion of the cch posting above), assume that it is.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing