Working in US on TN visa, wanting to invest an inheritance from Canada

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optism
Posts: 21
Joined: Thu Mar 10, 2016 5:44 pm

Working in US on TN visa, wanting to invest an inheritance from Canada

Post by optism »

Hello,

I am a Canadian on a TN visa in the US and, have been here a year, and expect to remain for at least 5 more years. I'm considered a non-resident of Canada for income tax purposes.

I recently received an inheritance from a deceased relative and am making plans to invest that money. I have eventual plans to return to Canada although it's hard to say when. Given my situation, a few general questions as I begin to navigate this:

1. What are the general tax implications of a Canadian inheritance? It seems like it's tax-free but still needs to be reported when I file my US taxes next year. Do I need to file any related Canadian tax forms because of this inheritance?

2. Are there tax implications of bringing to money into the US vs. leaving it in Canada? I understand that if I leave it it Canada, I would still need to report capital gains on my US tax return. Anything else worth noting?

3. It looks like I can't invest in anything Canadian gov't sponsored (RRSP, RESP, etc.). Can anyone confirm?

Thanks!
nelsona
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Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Re: Working in US on TN visa, wanting to invest an inheritance from Canada

Post by nelsona »

1. The inheritance is tax-free in US and Canada. It is considered a foreign gift by IRS, and must be reported on form 3520 if it is over $100K, but merely reported, no tax.

2. You are not permitted, as a US resident, from opening or maintaining an active investement brokerage account in Canada, so you options are limited to putting it in the bank for interest, or bringing it to US to invest. As a US resident you are taxable on world income.

3. It is doubtful that any Cdn RRSP form would aloow such an deposit as a non-resident. Besides, it would be of little value to do this tax-wise.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing :D
optism
Posts: 21
Joined: Thu Mar 10, 2016 5:44 pm

Re: Working in US on TN visa, wanting to invest an inheritance from Canada

Post by optism »

Nelson, thanks for the response. I wasn't at all aware I couldn't maintain or create an investment brokerage account in Canada. Much appreciated.
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