Serbinski Accounting Firms

Thanks, that seems reasonable. Part of what was concerning me was that by listing myself as "joint owner", and listing the account on the 8938, it might raise questions about why I wasn't reporting any interest from the account. (Since said interest actually belongs to my daughter, who doe...

My child and I are dual citizens resident in Canada. She has a simple bank account, with myself listed as co-owner on the account. (I don't think a minor can hold a bank account without a parent being listed on the account.) The money in the account belongs to her, and exceeds the FBAR reporting thr...

I'm a dual citizen resident in Canada. I own ETFs purchased on the NYSE through a Canadian brokerage. They send me both Canadian and US (1099) tax forms each year for dividend income earned. I am confused as to which country I owe tax to on this income. Since these are US-based ETFs (although held i...

Can TD Canada mutual funds be marked to market? As far as I know the only way to buy them is directly from TD Canada, so it's not clear that there's a "market", although there is a daily updated price that easy to come by, so it's not difficult to establish the value of the mutual fund.

I'd put it under "other income" on Line 21

I'm aware of that opinion. However, notice that it says that it does not constitute a precedent, and that it only ruled that the particular mutual funds in this person's case were PFICs. It remains unclear to me at least whether all Canadian mutual funds are PFICs. In principle someone with an under...

Title says it all. If Cdn mutual funds aren't PFICs, does it follow that they are foreign trusts instead? Or is there a third possibility?

A point of clarification please ... if a US citizen renounces American citizenship but is below the threshold for the "exit tax" are there any further complications with tax-deferred accounts like RRSPs, pensions, or Section 1291 PFICs (for which "excess distributions" treatment ...

I concede that there is some ambiguity as to whether the 8891 instructions exempt all unreported RRSPs from reporting penalities, or merely say that if you do file an 8891 then you can't be subject to 3520 requirements. (Which aren't as bad as you say, though---it's up to 40% of the money in questio...

I thought the statute of limitations would apply for filings more than three years old, unless the IRS can prove that you intended fraud. (Very unlikely in this case if you simply failed to report an account that you would have tax-deferred if you had remembered to file.) So I don't see that the IRS...

What is the penalty for not being up to date on past 8891 filings?

RP 2002-23 claims to contain the governing US rules on doing treaty elections under Article XVIII(7). When I read Rev Proc 2002-23, it clearly states that the election to defer US tax only applies to income accrued in the eligible plan and not to contributions to the plan (RP 2002-23, Sec. 3). And i...

I suppose another point is whether "income accrued in the plan" includes employer contributions to the plan, as well as internal earnings (interest, dividends, capital gains) accumulating inside the plan.

[quote]3. A new paragraph 7 shall be added to Article XVIII (Pensions and Annuities) of the Convention
as follows:
“7. A natural person who is a citizen or resident of a Contracting State and a beneficiary of a trust,
company, organization or other arrangement that is a resident of the other Contracting State, generally
exempt from income taxation in that other State and operated exclusively to provide pension, retirement
or employee benefits may elect to defer taxation in the first-mentioned State, under rules established by
the competent authority of that State, with respect to any income accrued in the plan but not distributed
by the plan, until such time as and to the extent that a distribution is made from the plan or any plan
substituted therefor.â€￾

Current rules are no need for reporting, and full taxation at withdrawal, in both countries.[/quote]

The text is seemingly clear except for two points:
1) When it says "may elect to defer taxation", does this require a specific declaration of election (eg. Form 8833)?
2) What is covered by "under rules established by the competent authority of that State"? This sounds like an invitation for the US to establish specific rules that may or may not apply in a particular case.

Can you provide a reference to a document showing that the plan is qualified? I have a tax accountant specializing in cross-border issues telling me adamantly that it isn't. I admit I find that surprising, but if there is some documentation it would help greatly.