Search found 309 matches

by MGeorge
Wed Sep 16, 2020 5:59 am
Forum: Canada / United States Tax & Accounting
Topic: QEF dividends
Replies: 4
Views: 269

Re: QEF dividends

That's right. Once you make the QEF election, you are no longer required to report distributions from the fund. Instead you report the QEF statement income on 8621. It is usually higher, but I've had a few cases were it is lower than the fund's actual distribution. Important to note that when you do...
by MGeorge
Wed Sep 02, 2020 12:10 pm
Forum: Canada / United States Tax & Accounting
Topic: 3520/3520a
Replies: 10
Views: 1101

Re: 3520/3520a

There is now a ruling that 3520/3520A is not required for RESPs (no update on TFSA type accounts). One thing many of us have learned is that 3520/3520A reporting is risky. Lots of incorrect robo letters with threatening fines mentioned. You could take the position that a TFSA is not a trust, there i...
by MGeorge
Wed Sep 02, 2020 12:05 pm
Forum: Canada / United States Tax & Accounting
Topic: QEF dividends
Replies: 4
Views: 269

Re: QEF dividends

You're right. Anything distributed from a pedigreed QEF is not to be reported as a dividend. It becomes a "non-dividend distribution" and it lowers your cost basis in the shares.
by MGeorge
Wed Sep 02, 2020 12:02 pm
Forum: Canada / United States Tax & Accounting
Topic: Ending 3520/3520A for RESP
Replies: 3
Views: 180

Re: Ending 3520/3520A for RESP

I agree. Those robo letters are scary. I will file a final return with an explanation attached the end. One thing to consider is that if there is a non-zero balance included on the balance sheet for form 3520A, the system might expect another return in future years. It might be best to fill out 3520...
by MGeorge
Wed Sep 02, 2020 11:58 am
Forum: Canada / United States Tax & Accounting
Topic: Reporting PFIC income when not required to file Form 8621
Replies: 6
Views: 1709

Re: Reporting PFIC income when not required to file Form 8621

Hi Canadianius, Sorry for the late response. To answer your questions: 1. The fact that the dividends were reinvested has no effect for PFIC purposes. If one of the dividends is considered an excess distribution, then form 8621 needs to be file. An excess distribution is a distribution that is 1.25 ...
by MGeorge
Fri Jun 05, 2020 12:26 pm
Forum: Canada / United States Tax & Accounting
Topic: TFSA reporting for Canadian who moved to the US
Replies: 5
Views: 1560

Re: TFSA reporting for Canadian who moved to the US

Oh yeah, I just noticed that in section 5.04 "non-retirement foreign trusts"
by MGeorge
Fri Jun 05, 2020 8:58 am
Forum: Canada / United States Tax & Accounting
Topic: TFSA reporting for Canadian who moved to the US
Replies: 5
Views: 1560

Re: TFSA reporting for Canadian who moved to the US

Hi Cullen, This is great news - thanks for providing this update! Forbes has an article on it. https://www.forbes.com/sites/robertwood/2020/03/03/irs-gives-big-tax-reporting-break-to-foreign-trusts/#2391e8a9598f This should be the end of 3520/3520A reporting for TFSAs and RESPs. The revenue procedur...
by MGeorge
Thu Jun 04, 2020 8:04 am
Forum: Canada / United States Tax & Accounting
Topic: TFSA reporting for Canadian who moved to the US
Replies: 5
Views: 1560

Re: TFSA reporting for Canadian who moved to the US

Hello, I file 3520/3520A for my TFSA, but regret it. There is very good set of legal arguments that the TFSA is not a trust. I believe the safest thing is to stay away from forms 3520/3520A. I've gotten scary letters saying that I filled them incorrectly, even though they were correct. It's like get...
by MGeorge
Thu Jun 04, 2020 7:49 am
Forum: Canada / United States Tax & Accounting
Topic: Do I Need an AIS for a PFIC?
Replies: 1
Views: 394

Re: Do I Need an AIS for a PFIC?

Hello, I've held Canadian ETFs with the QEF election and with the mark-to-market election. From a tax point of view, the good part about the QEF election is that it allows long term capital gain treatment. However, I have found that the book keeping required with the QEF election is much more compli...
by MGeorge
Mon Jan 20, 2020 12:04 pm
Forum: Canada / United States Tax & Accounting
Topic: community property rules
Replies: 1
Views: 868

Re: community property rules

Hello, A married couple living apart has special rules regarding community property. There is a section in publication 555 called "community property rules disregarded". I believe that you just report income you earned. Passive income is more complicated and probably still received community propert...
by MGeorge
Wed May 01, 2019 4:26 pm
Forum: Canada / United States Tax & Accounting
Topic: PFIC!
Replies: 2
Views: 1080

Re: PFIC!

Hello, To my knowledge Tangerine investment funds won't provide you with the required PFIC annual information statement needed to make a QEF election. You can 1 of 2 things. Make a mark-to-market election, or stick with the default treatment. The nice thing about tangerine investment funds is that t...
by MGeorge
Tue Apr 16, 2019 11:00 am
Forum: Canada / United States Tax & Accounting
Topic: Penalty for Form 3520 for TFSA
Replies: 13
Views: 4619

Re: Penalty for Form 3520 for TFSA

Hi aed11, I'm very sorry to hear about what is happening to you. I too have received letter after letter about my 3520/3520A filings and I'm getting so sick of it. I agree with CdnAmerican - just get a hold of someone at the IRS office and see if you can get the penalties fully wiped out. The legal ...
by MGeorge
Mon Mar 11, 2019 4:10 pm
Forum: Canada / United States Tax & Accounting
Topic: Reporting PFIC income when not required to file Form 8621
Replies: 6
Views: 1709

Re: Reporting PFIC income when not required to file Form 8621

By the way, if one doesn't file form 8621, and the annual dividends are consistent enough not to trigger an "excess distribution", then the fund is sold for a loss, then form 8621 never needs to be filed for that specific fund. This happened to me once.
by MGeorge
Mon Mar 11, 2019 4:09 pm
Forum: Canada / United States Tax & Accounting
Topic: Reporting PFIC income when not required to file Form 8621
Replies: 6
Views: 1709

Re: Reporting PFIC income when not required to file Form 8621

I agree with nelsona- one still needs to do the calculation so avoiding the form doesn't save much. If one takes advantage of the exemption from filing form 8621, then the default tax treatment applies. Dividends are reported as ordinary dividends (not qualified). Unrealized gains do not need to be ...
by MGeorge
Mon Mar 11, 2019 3:42 pm
Forum: Canada / United States Tax & Accounting
Topic: PFIC with a loss
Replies: 14
Views: 7133

Re: PFIC with a loss

Did you have a mark-to-market election in effect when you reported the $1,350 gain? If so, then you can report the $850 as a mark-to-market loss reported on line 20 (or 21?) "other income". It would just be a negative number on that line. If the loss was from a sale with no mark-to-market election, ...