Tax implications of transfers in-kind?

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moneyissues123
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Joined: Sun Mar 13, 2016 5:25 pm

Tax implications of transfers in-kind?

Post by moneyissues123 »

Are there any IRS tax implications with a transfer in-kind of securities held in a Canadian investment account to an American investment account?
nelsona
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Post by nelsona »

No, this is not at triggering event. Nor for Cdn tax purposes. Only your deemed disposition (coupled with decision to invoke the treaty) will change the cost basis for IRS purposes.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing :D
moneyissues123
Posts: 10
Joined: Sun Mar 13, 2016 5:25 pm

Post by moneyissues123 »

What if there is no deemed disposition on account of changing residency status because these investments were held on a TFSA?
nelsona
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Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Post by nelsona »

Then, as I said, "Only your deemed disposition (coupled with decision to invoke the treaty) will change the cost basis for IRS purposes".

So your investments retain their cost basis. And if they are sold while you are a US tax resident (or claim to be one), you will owe tax on the entire gain.

Your TFSA should be collapsed before leaving in any event.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing :D
nelsona
Posts: 18314
Joined: Wed Oct 27, 2004 2:33 pm
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Post by nelsona »

And please ask the question you are intending to have answered. A TFSA is not an investment account, nor is an RRSP, LIRA, RRIF, RESP, just so we are clear.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing :D
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