CAN->USA: Advice on tax years and CAN investments

[eric.stsharp]

Hi All,
Will probably schedule a consult with office regarding my situation but thought I might try here to glean as much info as possible beforehand.

Scenario:
Canadian husband married American wife in Oct 2017. Filed I-130 Nov of 2017, currently awaiting visa interview date and subsequent Green Card. Wife filed 2017 taxes to IRS in 2018 married but separately, husband received ITIN number when filed as per accountants direction. Husband residing/working in CAN until green card, but is approaching 182 days (6 months) visiting total in 2017-18.

#1. Would husband need to file to IRS for 2017 and/or 2018 because of ITIN, or only if he goes over 182 days (assuming GC does not arrive by end of 2018)?

Husband assets in Canada include a non-registered investment account with CAN bank with CAN mutual funds. Understand that as a US tax resident CAN mutual funds are considered PFIC and very onerous to report. Considering an unfavorable CAN->USA exchange rate:

#2. Any recommendations as to options for moving the investment out of mutual funds as a US tax resident?

Appreciate any insight!

[nelsona]

1. He would only need to file 1040 if he moved to US, and gave up Cdn residence. Cdns are not bound by the 182 day rule, as long as they are "more" resident in Canada. One may have to file a 1040NR to prove this, using the treaty, if one stayed more than 183 days. ITIN is not a reason to file.

2. Once he moves, he will need to give up these accounts in any event, and they will be subject to deemed disposition if he still has them when he leaves. So he should be considering winding these accounts up before moving. The exchange rate shouldn't bother you. Your only concern is if it will ever go up (will it?). If that is a concern, buy Cdn companies that trade in US markets. I'm not of the opinion that the C$ is in a historically bad position. Other than during the US bank crisis, the C$ has long been in the 65-85 cent range, right where it is now.

[eric.stsharp]

Appreciate the helpful response!