Tax implications of Global / International investment accounts in CAD funds?

This is our main tax information forum which deals with topics concerning Canadians living and working in the U.S., U.S. citizens contemplating working in Canada, and all aspects of Canadian and U.S. income tax and related adminstrative issues.

Moderator: Mark T Serbinski CA CPA

Post Reply
sedona
Posts: 17
Joined: Fri Jan 26, 2018 11:48 pm

Tax implications of Global / International investment accounts in CAD funds?

Post by sedona »

Some financial institutions provide global/international investment accounts. Basically, these accounts allow you to keep your funds in CAD in the US and invest in stocks and other securities. With these accounts, since the account resides in the US it makes it easier to file taxes and no need to do Canadian tax and appears to be better than having money sit in saving accounts in Canada. I am wondering if anyone has done this and if there are any tax implications with this.
nelsona
Posts: 18311
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Re: Tax implications of Global / International investment accounts in CAD funds?

Post by nelsona »

You'd need to give us an example, but I'm not sure what "implications" you would be wondering about. You buy, you sell, you make profit, you pay tax.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing :D
sedona
Posts: 17
Joined: Fri Jan 26, 2018 11:48 pm

Re: Tax implications of Global / International investment accounts in CAD funds?

Post by sedona »

Is there a special reporting required for such Accounts?
How does currency exchange take into account in this case, since CAD -> USD fluctuate all the time? Say, there is no actual gain from your investment, but the CAD -> USD conversion resulted in a higher amount? would that lead to taxation even though there is no actual gain as far as the CAD is concerned?
nelsona
Posts: 18311
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Re: Tax implications of Global / International investment accounts in CAD funds?

Post by nelsona »

These transactions would all be evaluated in USD at the moment they are made. The only gain/loss you would be interested in is in USD, to report on your 1040.

There would be no special FATCA reporting , since these are held in US brokerages. Of course, it is possible that some of your investments would be considered PFICS, requiring special treatment.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing :D
Garganzolla
Posts: 3
Joined: Sat Mar 12, 2022 11:15 am

Re: Tax implications of Global / International investment accounts in CAD funds?

Post by Garganzolla »

To find out how to get around the tax law, it is best to ask for help from an experienced accountant. Because of his extensive experience in this field, he will definitely be able to help you. When I was in college, I also asked an accountant for help. When I was 17, my friend told me how to make money as a teenager https://haveyourdollarsmakesense.com/ho ... -teenager/ . I was interested in this because my parents were having difficulty paying for me completely. When I earned my first money, I went to an accountant for advice to avoid problems with the tax authorities.
Post Reply