Hi all,
I'm trying to help a Canadian friend who just learned that TFSAs are taxable in the US. This person has lived here full time for the past 4 years and paid taxes in both the US and Canada. Meanwhile, this person had 2 separate TFSAs and did not realize that these could be taxed in the US. This person did not contribute to the TFSAs while living in the US but obviously accrued interest. What is the best course of action at this point?
Another TFSA intricacy
Moderator: Mark T Serbinski CA CPA
First off he shpuldnot be reporting or paying tax in Canada since he left. he needs to go back and change the last 4 years.
Second, he needs to report all the income his TFSA made in the last 4 years by amending his US return.
Third, he needs to make sure he has made all the required foreign reporting for IRS, including FBAR, FATCA, PFIC, and 3520 for any and all foreign accounts he has.
Fourth, he needs to close the TFSA at some point this yearFifth, he should be asking these questions.
Second, he needs to report all the income his TFSA made in the last 4 years by amending his US return.
Third, he needs to make sure he has made all the required foreign reporting for IRS, including FBAR, FATCA, PFIC, and 3520 for any and all foreign accounts he has.
Fourth, he needs to close the TFSA at some point this yearFifth, he should be asking these questions.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing 