I am a Canadian who has recently moved to the US for two years for work. I have an L1 visa. I sold my house in Canada but am keeping my investments (RRSP, TFSA, non-registered) because I plan to return to Canada.
When attempting to update my address with an institution managing one of my non-registered investments, they told me that I could not hold that investment unless I had a Canadian address. They suggested using a relative's address in Canada or else cashing in the investment and holding it in a bank account until I return. I'm not a fan of leaving it in a bank account and I also do not want to take the chance of attaching a Canadian address to my investments while I am living and working in the US. The other institution where I have a non-registered investment did not mention any issues when I changed my address.
Are some non-registered accounts able to be held by Canadians with US addresses and others are not? I never would have thought there would be a difference.
Has anyone ever used a relative's Canadian address if you sold your own property and moved to the US?
Thank-you!
Keeping non-registered investment accounts in Canada
Moderator: Mark T Serbinski CA CPA
You should have closed down your non registered accts when you came to the US. The RRSP is ok to hold it as long as no activity is involved go to a brokerage firm that has cross border account holders such as TD Waterhouse, there a numerous posts in this forum on this subject mater read them for more info.
JG
Thank-you, I did actually search this forum but didn't find a thread that addressed my particular situation.
Is it your recommendation that I should have closed my accounts or is there some tax rule that says I HAVE to, that I cannot hold these investments? Are you speaking from experience or as a tax professional?
My company has provided PWC to handle my tax returns for me and they are aware that I hold investments...they didn't tell me that I had to cash them in, just that there is extra paperwork to file. And of the two institutions that are holding my non-reg investments, only one raised it as an issue to have a US address. So I was guessing that you CAN hold non-reg, but that the individual fund might have rules about who can or cannot hold it. Not sure if that assumption is correct or not.
:D
Is it your recommendation that I should have closed my accounts or is there some tax rule that says I HAVE to, that I cannot hold these investments? Are you speaking from experience or as a tax professional?
My company has provided PWC to handle my tax returns for me and they are aware that I hold investments...they didn't tell me that I had to cash them in, just that there is extra paperwork to file. And of the two institutions that are holding my non-reg investments, only one raised it as an issue to have a US address. So I was guessing that you CAN hold non-reg, but that the individual fund might have rules about who can or cannot hold it. Not sure if that assumption is correct or not.
:D
These are US regaulatory issues, because yoru broker is not licensed in your state of residence. in fact to have suggested to spoof an adress in canada is a violation. Dump it.
Your TFSA is not tax-free in US, so there is no point keeping it. Empty it and close it and you can put back thata mount when/if you go back to Canada.
Your TFSA is not tax-free in US, so there is no point keeping it. Empty it and close it and you can put back thata mount when/if you go back to Canada.
After 20 years, I am severely cutting back on responses. Do not ask specifically for my help. There are a few others on this board that can answer most questions. All the best
-
ExpatAmerican
- Posts: 45
- Joined: Tue Aug 11, 2009 10:48 am
It would not be necessary to close down your non-registered accounts/sell all your security holdings. In fact, you may face unfavorable tax issues, currency conversion issues, and unnecessary commissions in doing so.
US Securities laws (US laws apply, now that you reside there) dictate that both your broker and your brokerage firm be licensed both with the SEC and in the state that you now reside. Very few Canadian brokerage firms are licensed to do business (non-registered accounts) with US residents.
Notwithstanding the conflicting advice you received from your Canadian brokerage firms, suffice it to say, I would suggest you try and accomplish these 4 things. 1. Find a brokerage firm that is licensed with the SEC and in your state. 2. Find a broker at the firm that is similarly licensed. These 2 things are simple enough. Many options in the US, much fewer in Canada that would qualify. 3. Find a firm/broker that qualifies that also has a robust C$ and US$ trading platform that would allow you to continue to own either US$ or C$ investments without unneccessary currency conversion issues (trying to hold a C$ security with a US firm that does not allow C$ investment accounts will cost you money, trust me). 4. Ensure that this broker is conversant in cross border securities taxation issues to ensure that you do not get tripped up owning PFICs (google it).
Darrell Thompson at Macquarie Private Wealth Corp is SEC/FINRA licensed in 30 states, and Macquarie has an excellent cross border trading platform. He can be contacted via email at darrell.thompson@macquarie.com or contacted toll free at 866-775-7704.
US Securities laws (US laws apply, now that you reside there) dictate that both your broker and your brokerage firm be licensed both with the SEC and in the state that you now reside. Very few Canadian brokerage firms are licensed to do business (non-registered accounts) with US residents.
Notwithstanding the conflicting advice you received from your Canadian brokerage firms, suffice it to say, I would suggest you try and accomplish these 4 things. 1. Find a brokerage firm that is licensed with the SEC and in your state. 2. Find a broker at the firm that is similarly licensed. These 2 things are simple enough. Many options in the US, much fewer in Canada that would qualify. 3. Find a firm/broker that qualifies that also has a robust C$ and US$ trading platform that would allow you to continue to own either US$ or C$ investments without unneccessary currency conversion issues (trying to hold a C$ security with a US firm that does not allow C$ investment accounts will cost you money, trust me). 4. Ensure that this broker is conversant in cross border securities taxation issues to ensure that you do not get tripped up owning PFICs (google it).
Darrell Thompson at Macquarie Private Wealth Corp is SEC/FINRA licensed in 30 states, and Macquarie has an excellent cross border trading platform. He can be contacted via email at darrell.thompson@macquarie.com or contacted toll free at 866-775-7704.