Search found 313 matches
- Wed Apr 26, 2023 11:06 am
- Forum: Canada / United States Tax & Accounting
- Topic: PFIC enforcement
- Replies: 4
- Views: 1747
Re: PFIC enforcement
Hello Ianman2000, VGRO is a great fund, I have it as well. You're right about the double tax issue due to the timing. It's very odd how sometimes the QEF inclusions are very high, and then sometimes zero. I suspect no one at the fund companies really understands how to compute the inclusion amounts....
- Fri Apr 21, 2023 3:42 pm
- Forum: Canada / United States Tax & Accounting
- Topic: Reporting RESP Government Grant as interest, capital gain or capital gain distribution?
- Replies: 2
- Views: 1234
Re: Reporting RESP Government Grant as interest, capital gain or capital gain distribution?
Hello, I would not report grant money has interest or dividends. It is effectively a payment from government with a contractual obligation that you'll use the money for the beneficiary's education. I have heard the position that it does not need to be reported in the year received because the RESP h...
- Fri Apr 21, 2023 3:37 pm
- Forum: Canada / United States Tax & Accounting
- Topic: PFIC enforcement
- Replies: 4
- Views: 1747
Re: PFIC enforcement
Hello, I've been wondering the same thing. I have years of experience filing QEF elections on form 8621 and I still struggle to keep track of all of the cost basis adjustments for each lot, etc. If we just treat Canadian ETFs and mutual funds as if they were regulated investment funds "RICs&quo...
- Wed Jan 13, 2021 12:14 pm
- Forum: Canada / United States Tax & Accounting
- Topic: QEF dividends
- Replies: 5
- Views: 3663
Re: QEF dividends
Hello - that is correct to my knowledge.
- Wed Sep 16, 2020 5:59 am
- Forum: Canada / United States Tax & Accounting
- Topic: QEF dividends
- Replies: 5
- Views: 3663
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...
- Wed Sep 02, 2020 12:10 pm
- Forum: Canada / United States Tax & Accounting
- Topic: 3520/3520a
- Replies: 10
- Views: 5660
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...
- Wed Sep 02, 2020 12:05 pm
- Forum: Canada / United States Tax & Accounting
- Topic: QEF dividends
- Replies: 5
- Views: 3663
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.
- Wed Sep 02, 2020 12:02 pm
- Forum: Canada / United States Tax & Accounting
- Topic: Ending 3520/3520A for RESP
- Replies: 4
- Views: 3422
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...
- 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: 8
- Views: 8474
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 ...
- 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: 4820
Re: TFSA reporting for Canadian who moved to the US
Oh yeah, I just noticed that in section 5.04 "non-retirement foreign trusts"
- 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: 4820
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...
- 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: 4820
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...
- 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: 1777
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...
- Mon Jan 20, 2020 12:04 pm
- Forum: Canada / United States Tax & Accounting
- Topic: community property rules
- Replies: 1
- Views: 2190
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 communi...
- Wed May 01, 2019 4:26 pm
- Forum: Canada / United States Tax & Accounting
- Topic: PFIC!
- Replies: 2
- Views: 2996
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...