Became I resident of the US in July- TFSA

mecassa · Post by **mecassa** » Thu Mar 14, 2013 7:53 pm

Hello everyone,

I'm a J1 research scholar in Nashville TN. I came from Canada to the US on Dec 1/2010 and became a US resident in July 1/2012. I learned that having a TFSA as a US resident is a bad headache. I closed my TFSA on Dec 31/2012.

Do I have to submit a 3520-A form?

Would I owe taxes on the sale of TFSA assets (stocks and ETFs) or would I only owe for contributions after July 1/2012 (I didn't contribute anything, there would only be dividends from the stocks/ETFs)?

any advice from people?

nelsona · Post by **nelsona** » Thu Mar 14, 2013 9:21 pm

Assuming you are aUS tax resident (J1's aren't typically resident) then all income generated within the TFSA after your residncy start date is taxable. That includes interest, diviends, and any cap gains incuured from sales or distributions.

Yes you need to also submit 3520, and may need PFIC forms as well.