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I completely closed a PFIC in 2017, and am puzzled on the form 1116 for passive income. On Part 1, allocating the proportion of the standard deduction allocated to passive foreign income, do I include the entire gain of about $600 -- to which the standard deduction is NOT applicable -- or do I just ...

Also, your TFSA is a 'foreign trust' to the U.S. (and is taxable in the U.S.), so look into that and the US form 3520.

I'm not a tax pro or anything at all, but make sure you look up CDN forms T1161, T1243, T1135, and the CRA page for Newcomers to Canada (there's helpful stuff for part-year returns, even if you are not a newcomer to canada, but an emigrant). Ask lots of questions, especially about your RRSP (don't ...

Thank you!

I used the word 'vested' in the topic title, but to be more accurate, I should say 'no longer locked in'. We didn't make a withdrawal in 2016, he just would have been allowed to for the first time. It didn't make sense to me that 'no longer locked in' would create an excess distribution ...

Just to clarify -- we are using the default method (1291), and we paid tax to the U.S. each year on the reinvested dividends.

We are U.S. citizens with a PFIC in Canada, and have moved back to the U.S. No 8621's were previously filed (under $25,000, no withdrawals, no excess distributions).

I have read that reinvested dividends do not constitute an excess distribution if the rules of the PFIC do not allow you to withdraw ...

Thank you.

I think I'll have to conclude that my husband has no cost basis from his contributions, either. They were made between 2012 and 2016 with a Canandian employer, not deducted, but never exceeded the allowable limit for contributions to an RRSP nor the annual limit for contributions to a ...

Would the proportion excluded on the 2555 only apply to the employer contribution? That could be fairly considered to be deferred compensation, since it wouldn't be available to the employee who did not have an RRSP.

The part that is the employee compensation would be available without the RRSP ...

I just need to double check, and will clarify our situation at the bottom.

This was posted by NELSONA in 2007, so is partly obsolete (https://forums.serbinski.com/viewtopic.php?t=2029):

"Regardless of whether his RRSP [u]contributions [/u]were taxed in US or not (there is no deduction fo ...

Thanks SO much!

No, he didn't deduct his or his employers contributions from his wages, on the 1040. We just used the FEIE.

So it sounds like the cost basis for the imaginary year would be $1,000 -- 10% of the employer and employee contributions.

That makes good sense, and I'm very happy to have ...

I have searched and read all the previous threads on this topic that I could find. I couldn't find my precise situation. My husband and I lived in Canada for a few years. We are U.S. citizens, now returned to the U.S. since 2016. He has just taken a distribution from his RRSP.

For his U.S. return ...