Search found 309 matches

by MGeorge
Wed Jan 18, 2017 5:24 pm
Forum: Canada / United States Tax & Accounting
Topic: Filing 3520/3520-a regarding REPS for the first time
Replies: 9
Views: 2633

Hi puzon23, OK, given the higher exemption of $50k, you could probably put off filing form 8621 for a few years, but you will have to file 8621 when you exceed the threshold, or you sell a fund for a gain. Also, if one of the fund makes a "higher than normal distribution" known as an excess distribu...
by MGeorge
Tue Jan 17, 2017 3:19 pm
Forum: Canada / United States Tax & Accounting
Topic: Filing 3520/3520-a regarding REPS for the first time
Replies: 9
Views: 2633

Hi puzon23, OK, so 3 mutual funds in your RESP. Have a look at the balance on Dec 31. Does this put you over $25,000 USD? The exchange rate to use is 0.7448 I believe. If all of the mutual funds that you own are less than $25k, then you might qualify for the "de-minimus" exemption. Before I suggest ...
by MGeorge
Tue Jan 17, 2017 9:56 am
Forum: Canada / United States Tax & Accounting
Topic: Reporting credit cards and lines of credit on FBAR and FATCA
Replies: 4
Views: 2554

Hello again,

This might be helpful. There is a statement that "unsecured" credit card accounts are not generally reportable as a financial account.

https://www.irs.gov/pub/irs-wd/0603026.pdf
by MGeorge
Tue Jan 17, 2017 9:47 am
Forum: Canada / United States Tax & Accounting
Topic: Reporting credit cards and lines of credit on FBAR and FATCA
Replies: 4
Views: 2554

I read somewhere, but can't substantiate, that credit cards and lines of credit have to be reported unless there is an automatic refund to you if you overpay. In other words, if the balance goes positive, they send you a check automatically. None of my accounts do this. I don't report credit cards o...
by MGeorge
Tue Jan 17, 2017 9:40 am
Forum: Canada / United States Tax & Accounting
Topic: Filing 3520/3520-a regarding REPS for the first time
Replies: 9
Views: 2633

Hi,

I think you do have to file form 3520. Simply owning a foreign trust triggers this obligation. It is also the filing of form 3520 which triggers the requirement to file 3520A since no RESP promoter will do this for you.
by MGeorge
Mon Jan 16, 2017 12:42 pm
Forum: Canada / United States Tax & Accounting
Topic: Is a group RSP handled the same as a RRSP?
Replies: 6
Views: 1610

Another possible difference between a group RRSP and a personal RRSP might be the way the withdrawals are treated with respect to the NIIT (form 8960). While a personal RRSP is treated as a non-qualified annuity when withdrawn, this means that it would go on form 8960 as annuity income. In the instr...
by MGeorge
Tue Jan 10, 2017 3:24 pm
Forum: Canada / United States Tax & Accounting
Topic: Necessary to file 8621s?
Replies: 9
Views: 1552

Hi ethanpurdy, I've been filing 8621s now for 5 years. This year, I'm filing 8 of them on my tax return, and I just figured out that TaxAct won't let me efile more than 5. I'm trying to reduce the number of PFICs that I hold. What I try to do is only use a PFIC if I have to, and it seems that in mos...
by MGeorge
Mon Jan 09, 2017 4:46 pm
Forum: Canada / United States Tax & Accounting
Topic: Necessary to file 8621s?
Replies: 9
Views: 1552

Hello, Yes you are correct in my opinion. The 4 sold for a loss can simply go on schedule D (there was some analysis done in another thread that shows that PFICs sold for a loss with no election made, can go on schedule D as if they weren't PFICs). The 4 sold for a gain would have to go on 8621. You...
by MGeorge
Tue Aug 16, 2016 9:56 am
Forum: Canada / United States Tax & Accounting
Topic: California tax on RRSP
Replies: 4
Views: 1285

I just read in another thread that the California tax authority doesn't care about the PFIC rules - please disregard that point from my previous post! You might be fine with those Horizons ETFs (a smart move now that I think about it!)
by MGeorge
Tue Aug 16, 2016 9:53 am
Forum: Canada / United States Tax & Accounting
Topic: California tax on RRSP
Replies: 4
Views: 1285

Hi There, Those Horizons total return swap based ETFs would certainly be considered PFICs under US tax laws. As a resident of Canada, I can't believe they are allowed here. They make no distributions, and all investments gains are only taxable when the units are sold. This is exactly what the PFIC r...
by MGeorge
Fri May 20, 2016 8:18 am
Forum: Canada / United States Tax & Accounting
Topic: Passive Foreign Investment Company
Replies: 12
Views: 4728

Hi speer, You are correct about keeping track of your investment in the fund by converting CAD to USD for each purchase. QEF income is the amount you have to claim on your tax return. This is the amount that the US tax rules say that the fund should have distributed to you (but maybe it didn't becau...
by MGeorge
Thu May 19, 2016 3:10 pm
Forum: Canada / United States Tax & Accounting
Topic: Passive Foreign Investment Company
Replies: 12
Views: 4728

Hi nelsona, speer, This post prompted me to look at Vanguard Canada ETFs and Ishares Canada ETFs. Most of the vanguard ETFs provide PFIC annual information statements and all of the Ishares ETFs provide PFIC annual information statements. That's it - anyone who indexes their portfolios can do the QE...
by MGeorge
Thu May 19, 2016 1:10 pm
Forum: Canada / United States Tax & Accounting
Topic: Passive Foreign Investment Company
Replies: 12
Views: 4728

Hello speer, I'll do my best to answer your questions. I didn't know Vanguard Canada offered PFIC annual information statements, this is news to me! A QEF election is almost as good as having a non-PFIC investment. I say "almost" because the ordinary earnings you report from the QEF statement is tre...
by MGeorge
Thu May 19, 2016 8:37 am
Forum: Canada / United States Tax & Accounting
Topic: Passive Foreign Investment Company
Replies: 12
Views: 4728

I need to correct my typo about what Ishares Canada said to me:
"we have no plans to offer such statements, and we are under no obligations to provide these".
by MGeorge
Thu May 19, 2016 8:34 am
Forum: Canada / United States Tax & Accounting
Topic: Passive Foreign Investment Company
Replies: 12
Views: 4728

You should call them, and share with us what they say. I wouldn't be surprised if they don't know what you're talking about. I once called Ishares Canada and asked them if they were considering providing QEF statements - and the response was a very defensive: "we have no plans to offer such statemen...