Declaration of Canadian fund to IRS

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ruib77
Posts: 34
Joined: Sat Jul 14, 2012 10:17 pm

Declaration of Canadian fund to IRS

Post by ruib77 » Thu May 23, 2019 9:27 am

Hi,

I emigrated from Canada in 2015. Since then my house became a rental property. My rental income is accumulating in Canadian bank account and so far never transferred the money to USA. I am submitting statement of rental income and S.216 to CRA each year. I am also submitting info regarding rental income to IRS with 1040 and getting foreign tax credit.

Do I also need to declare the accumulated Canadian dollar to IRS as foreign assets? If yes, what is the procedure.

Thanks

nelsona
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Re: Declaration of Canadian fund to IRS

Post by nelsona » Thu May 23, 2019 1:40 pm

Your CDn bank account is subject to FBAR reporting, assuming it and any other financial accounts hold more than 10K.
I'll let someone else deal with whether your Cdn rental is a foreign asset needing FATCA reporting.
Nelsona Non grata. Non pro. Search previous posts. Happy Browsing :D

ruib77
Posts: 34
Joined: Sat Jul 14, 2012 10:17 pm

Re: Declaration of Canadian fund to IRS

Post by ruib77 » Thu May 23, 2019 5:36 pm

Thanks for the reply. I found followings from IRS site:

you don’t need to report foreign financial accounts that are:

Correspondent/Nostro accounts,
Owned by a governmental entity,
Owned by an international financial institution,
Maintained on a United States military banking facility,
Held in an individual retirement account (IRA) you own or are beneficiary of,
Held in a retirement plan of which you’re a participant or beneficiary, or
Part of a trust of which you’re a beneficiary, if a U.S. person (trust, trustee of the trust or agent of the trust) files an FBAR reporting these accounts.

Based on this,

- Can we consider TD and RBC as international financial institutions?
- I dont have to declare the RRSP or any company pension plan, right?

Thanks.

Bumble
Posts: 14
Joined: Tue Apr 23, 2019 1:07 am

Re: Declaration of Canadian fund to IRS

Post by Bumble » Fri May 24, 2019 1:40 am

My interpretation is that you don’t need to report foreign financial accounts that are owned by an international financial institution; however, the financial account where you hold your rental is owned by you, not an international financial institution, so you need to report it in FinCEN Form 114. I'm in the same boat and report my Canadian bank accounts maintained at TD Canada Trust in FinCEN Form 114 as well IRS Form 8938, which has a higher threshold, as part of my annual tax filings due on 15 April of every year.

coco1106
Posts: 80
Joined: Sun Jan 20, 2019 3:40 pm

Re: Declaration of Canadian fund to IRS

Post by coco1106 » Fri May 24, 2019 2:49 am

Hi,

sorry for any confusion, but are you saying if a usa citizens has a account at TD or RBC while living in Canada that the funds DO NOT have to be reported on FBAR ????

I thought all bank accounts had to be reported.

coco1106
Posts: 80
Joined: Sun Jan 20, 2019 3:40 pm

Re: Declaration of Canadian fund to IRS

Post by coco1106 » Fri May 24, 2019 3:23 am

When it says Owned by an international financial institution,..
is that the same as your account being maintained at the institution , for instance you personally own the money , but it is being maintained by the bank ?????

Or is it meaning you borrowed money from them and its OWNED by the financial institution ????

again, I am so sorry if this sounds basic, but I thought every foreign NON USA account greater than 10K had to be reported on FBAR ...does the reporting depend on which bank the money is being held at in Canada or foreign country.

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

Re: Declaration of Canadian fund to IRS

Post by nelsona » Fri May 24, 2019 7:50 am

All the accounts our poster has must be listed on FBAR. The bank doesn't own the account.
Nelsona Non grata. Non pro. Search previous posts. Happy Browsing :D

ruib77
Posts: 34
Joined: Sat Jul 14, 2012 10:17 pm

Re: Declaration of Canadian fund to IRS

Post by ruib77 » Fri May 24, 2019 3:12 pm

Based on on inputs and a call to FBAR hot line:

- FBAR reporting is required for bank accounts, RRSP, RPP. Not required for defined benefit pension plan.
- FATCA reporting is not required for individually owned rental property.

Thanks to all.

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