I've been in the U.S. on a TN since early 2014. Since I expect to return to Canada within the next year or so, I kept my substantial TFSA (which was fully invested in Canadian mutual funds), as well as my non-registered Canadian mutual fund accounts.
It appears that I'll need to report the presence of these accounts when I file my U.S. taxes as they are over $25k in aggregate, so first of all, 've been reading up on how to fill out the 8621. The QEF election does not seem possible as I will not have access to the required information on the mutual funds, and the MTM election also doesn't seem to apply because the mutual funds are only sold by my Canadian bank and aren't publicly traded. However, I've received no excess distributions I don't think, and I've made no sale of any of these funds over the course of the year. They've gone up in value and I've also added a bit of money to them (purchased additional shares) over the year. Because I haven't sold anything, I won't actually need to fill out the 8621, will I? And after I return to Canada, I can just stop reporting them?
Reporting my Canadian mutual funds on 8621
Moderator: Mark T Serbinski CA CPA
There is a thread on PFIC reporting. Even MFs sold by your bank have a market value, so you will use MTM. I'm curious as to what funds you are talking about.
As you see your TFSA is fully taxable in US -- and then some.
As you see your TFSA is fully taxable in US -- and then some.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing 
Re: Reporting my Canadian mutual funds on 8621
where you able to figure out your filing requirements??
mcaps.
[quote="Krakus"]I've been in the U.S. on a TN since early 2014. Since I expect to return to Canada within the next year or so, I kept my substantial TFSA (which was fully invested in Canadian mutual funds), as well as my non-registered Canadian mutual fund accounts.
It appears that I'll need to report the presence of these accounts when I file my U.S. taxes as they are over $25k in aggregate, so first of all, 've been reading up on how to fill out the 8621. The QEF election does not seem possible as I will not have access to the required information on the mutual funds, and the MTM election also doesn't seem to apply because the mutual funds are only sold by my Canadian bank and aren't publicly traded. However, I've received no excess distributions I don't think, and I've made no sale of any of these funds over the course of the year. They've gone up in value and I've also added a bit of money to them (purchased additional shares) over the year. Because I haven't sold anything, I won't actually need to fill out the 8621, will I? And after I return to Canada, I can just stop reporting them?[/quote]
mcaps.
[quote="Krakus"]I've been in the U.S. on a TN since early 2014. Since I expect to return to Canada within the next year or so, I kept my substantial TFSA (which was fully invested in Canadian mutual funds), as well as my non-registered Canadian mutual fund accounts.
It appears that I'll need to report the presence of these accounts when I file my U.S. taxes as they are over $25k in aggregate, so first of all, 've been reading up on how to fill out the 8621. The QEF election does not seem possible as I will not have access to the required information on the mutual funds, and the MTM election also doesn't seem to apply because the mutual funds are only sold by my Canadian bank and aren't publicly traded. However, I've received no excess distributions I don't think, and I've made no sale of any of these funds over the course of the year. They've gone up in value and I've also added a bit of money to them (purchased additional shares) over the year. Because I haven't sold anything, I won't actually need to fill out the 8621, will I? And after I return to Canada, I can just stop reporting them?[/quote]
Most bank mutual funds are publically traded, I'm not aware of any exceptions.
However, if you are returning to Canada anyway, the best thing to do is to leave them in the default "excess distribution" regime and don't sell them until you are back in Canada. Note that selecting a M2M election in the present tax year does not undo the default regime from applying to previous years.
Don't sell them until you are back in Canada! Especially if there are unrealized gains on some of them.
If you did chose a M2M election for 2014, it is treated like you sold them on Dec 31, 2013, and any gains get the highest tax rate + interest. That's never good.
However, if you are returning to Canada anyway, the best thing to do is to leave them in the default "excess distribution" regime and don't sell them until you are back in Canada. Note that selecting a M2M election in the present tax year does not undo the default regime from applying to previous years.
Don't sell them until you are back in Canada! Especially if there are unrealized gains on some of them.
If you did chose a M2M election for 2014, it is treated like you sold them on Dec 31, 2013, and any gains get the highest tax rate + interest. That's never good.
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MGeorge is neither an accounting nor taxation professional.
MGeorge is neither an accounting nor taxation professional.