Filling out 8938

[uscanadataxes]

Hello,
Filling out the form.
Seems easy enough for checking and saving accounts - will be listed as "deposit" accounts in the section I.
Now, for the hard stuff:

Account 1: TFSA held in a bank with some mutual funds in it.
Will go into section V as a deposit account, also into section III.1e as funds were withdrawn with a loss and account closed.

Account 2: TFSA held in another bank with US stocks in it.
Will go into a section VI.
1. Description of asset - "Brokerage account"
2. ID number or other designation - account number
3, 4, 5, 6. easy
7. skip
8. Issuer checked
Individual checked
Foreign person checked

Account 3: Investment account (not TFSA) in a Canadian brokerage firm that holds US stocks in it.
Same as account 2.

Account 4: RRSP account with segregated funds in it, held in an assurance company
Will go into a section VI.
1. Description of asset - "Registered Retirement Account"
2. ID number or other designation - account number
3. Part of the asset was withdrawn – should the date of withdrawal go into VI.3b?
Taxes were paid to Canada, no taxes paid to US, as there was a loss – should the checkbox VI.3d be unchecked? How do I report withdrawal in section III – III.2f, as a deduction or III.2d, as other income ?
4, 5, 6. easy
7. skip
8. Issuer checked
Individual checked
Foreign person checked

Account 5: LIRA account with US, Canadian stocks and mutual funds in it, held in a bank.
1. Description of asset - "Registered Retirement Account"
2. ID number or other designation - account number
3, 4, 5, 6. easy
7. skip???
8. Issuer checked
Individual checked
Foreign person checked

Could you please comment on my choices? Thanks a LOT!!!

[nelsona]

maybe.

Remmeber that for your mutual funds held outside RRSP, you are also subject to PFIC reporting and tax.

[uscanadataxes]

Thank you.
Are you talking about "Account 1" above? Which other forms do I need to fill out?
Would LIRA be treated the same way as RRSP?

[nelsona]

Yes, your old TFSA.
LIRA is like RRSP for this purpose, shielded from PFIC.
Search for PFIC.

[uscanadataxes]

Thank you, neslona!
As for question 8, I'm seeing some variations to the answers elsewhere.
Does the "foreign entity" pertains to the account, account holder or institution that holds that account?
I would think it is about an account, but then it is asking "U.S.Person" vs "Foreign Person" and everything is confusing again...

[nelsona]

There are others on this site that handle those forms, I leave that to them.

[uscanadataxes]

Thank you! Hope someone replies))

[uscanadataxes]

From https://www.law.cornell.edu/cfr/text/26/1.1471-5#b_3_i

"(ii)Custodial account. The term custodial account means an arrangement for holding a financial instrument, contract, or investment (including, but not limited to, a share of stock in a corporation, a note, bond, debenture, or other evidence of indebtedness, a currency or commodity transaction, a credit default swap, a swap based upon a nonfinancial index, a notional principal contract as defined in § 1.446-3(c), an insurance or annuity contract, and any option or other derivative instrument) for the benefit of another person."

Reading this, any account that is not RRSP/LIRA/checking/saving would fall under the Custodial category, and in my case Accounts 1, 2, 3 should be reported as Custodian. What do you think?