FBAR Reporting for GICs Held in Canadian Brokerage Account

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Stevecanada
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Joined: Sun Mar 30, 2014 4:21 pm
Location: Canada

FBAR Reporting for GICs Held in Canadian Brokerage Account

Post by Stevecanada » Mon Jan 21, 2019 6:31 pm

Hello - I am a dual US/Canadian citizen living in Canada. I recently opened an account with TD Direct Investing. Through the TD Direct Investing account, I purchased GICs at various other banks and trust companies. My question: For FBAR reporting, is it sufficient to report the TD Direct Investing account, or do I have to report each of the GICs held in the TD Direct Investing account? Reporting individual GICs would be difficult, as the TD Direct Investing account does not provide account numbers for individual GICs purchased from other financial institutions but held within my TD Direct Investing account. Also - any other reporting required for a brokerage account that only holds GICs? Note that TD Direct Investing has told me that the GICs are held directly in my name (not in their name in trust). Any help would be greatly appreciated.

nelsona
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Re: FBAR Reporting for GICs Held in Canadian Brokerage Account

Post by nelsona » Mon Jan 21, 2019 7:27 pm

For FBAR, the overall holding account is what is reported, regardless of what is inside the account.

For FATCA, PFIC etc, if you held mutual funds, it may be necessary to list each investment on the required forms.
Nelsona Non grata. Non pro. Search previous posts. Taking period between now and June off. Will only answer sporadically.

Stevecanada
Posts: 14
Joined: Sun Mar 30, 2014 4:21 pm
Location: Canada

Re: FBAR Reporting for GICs Held in Canadian Brokerage Account

Post by Stevecanada » Mon Jan 21, 2019 8:58 pm

Thanks Nelson - this is very helpful.

Just to clarify, if I only hold GICs in my brokerage account, then PFIC / 3520 reporting should not be required. Is this correct?

nelsona
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Re: FBAR Reporting for GICs Held in Canadian Brokerage Account

Post by nelsona » Mon Jan 21, 2019 9:31 pm

Correct. And remember, that for interest bearing certificates, you do not have to report the income on your 1040 until you actually get the income. In Canada you must report yearly accrued income, whether received or not. You can choose this method for 1040 as well . This may or may not prove useful to you in terms of foreign tax credits.
Nelsona Non grata. Non pro. Search previous posts. Taking period between now and June off. Will only answer sporadically.

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