Canadian on OPT/H1B and Canadian Mutual Funds US 2013 Tax

[LC]

Hi,

I started working for US company under F1/OPT in Jan 2013 and my company sponsored my H1B and I am now on H1B as of Oct 1, 2013.

For my 2013 US tax return, after much researching, I found that there are issues to what I need to file, since I still have Canadian assets (including non-registered investment account for mutual funds), I don't have RRSP/TFSA yet, and I guess I need to avoid TFSA.

I know can either file my tax return as non-resident alien with 1040NR, or elect to file as dual-status resident alien with 1040 AND 1040NR. If I file under non-resident alien, I will probably delay the reporting of foreign financial accounts through FBAR?, and get some time to sort out things, but if I choose to file as dual-status resident alien, now the fun begins.

I don't mind paying the taxes on income/interests from my Canadian accounts (the are little if not none), but the problem I have is mostly to do with my non-registered investment account for mutual funds, which generates most of the growth. I guess I should sell them this year and move some to RRSP and transfer some to just regular investment account either in Canada or US, but how much I would have to pay in taxes? Do I only pay on gains for the difference since Oct 1, 2013 and when I sell? I do not find a lot of relevant information on this aspect of the tax return. If anyone could shade some light that would be great! Thanks in advance.

[nelsona]

The FIRST thing you need to do is file your 201 Cdn departure return, with October departure date and pay your departure tax.

Then you can worry about how you will file in US (you have 3 choices, including a regular 1040 for entire year).

The least you have to worry tax-wise is your investemnts. What you need to do is close those accoutns and sell or transfer your assets to a US broker.

Forget RRSP and anything else in canada.