I am a dual Canadian/US citizen. I lived in US for 33 years but moved back to Canada last year. I transferred $$ from US to Canada that I would like to invest rather than buy real estate. I understand that investing in PFICs (Passive Foreign Investment) is strongly discouraged due to tax obligations and complicated (costly) tax schedule. Does anyone know whether or not a mortgage investment company such as Terrapin Mortgage Investment Corporation (http://www.tmic.ca) would be considered a PFIC? Can anyone recommend Canadian investments that would not be punitive to US/Canadian citizens living in Canada? I should mention that I am close to retirement age and not earning a great deal of income so starting an RRSP (retirement plan) wouldn't make sense because my funds earning practically nothing in a savings account far exceed what I can put in an RRSP.
Thanks!
Is mortgage investment a PFIC?
Moderator: Mark T Serbinski CA CPA