can capital loss on TFSA be reported on 1040 as capital loss

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xiaoice
Posts: 51
Joined: Fri Mar 24, 2017 2:38 pm

can capital loss on TFSA be reported on 1040 as capital loss

Post by xiaoice »

In 2015, I purchased the TFSA while I was in Canada.
In 2017, I removed to USA, and become non-resident in Canada.
In 2019, the TFSA account was closed, and I loss 70% of my investment.

Since 2017, I have been reporting this TFSA on 3520. For the final year (2019) tax, can I report the loss as capital loss in 1040 to IRS?

Thank you!
nelsona
Posts: 18314
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Re: can capital loss on TFSA be reported on 1040 as capital loss

Post by nelsona »

Since TFSA's are not sheltered accounts in US, you should have been reporting all income/losses generated in your TFSA on your 1040. If you incurred losses in 2019, you should report them as well.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing :D
xiaoice
Posts: 51
Joined: Fri Mar 24, 2017 2:38 pm

Re: can capital loss on TFSA be reported on 1040 as capital loss

Post by xiaoice »

I selected Market-to-market for 8621 for the previous years (2017 and 2018). There is no gain, but losses (however, I did not claim the loss in 1040 - because I thought the TFSA account was not closed yet)
For 2019, the account was closed. I can elect to "Election To Recognize Gain on Deemed Sale of PFIC."

I basically want to just do the simple math. The total investment in 2015 minus (1) what I got back in 2019.

Thanks!
xiaoice
Posts: 51
Joined: Fri Mar 24, 2017 2:38 pm

Re: can capital loss on TFSA be reported on 1040 as capital loss

Post by xiaoice »

I need rephrase my question:
Which is the simplest way to claim the loss? can I select"Election to recognize gain on deemed sale of PFIC" in 2019?


xiaoice wrote:
> I selected Market-to-market for 8621 for the previous years (2017 and
> 2018). There is no gain, but losses (however, I did not claim the loss in
> 1040 - because I thought the TFSA account was not closed yet)
> For 2019, the account was closed. I can elect to "Election To
> Recognize Gain on Deemed Sale of PFIC."
>
> I basically want to just do the simple math. The total investment in 2015
> minus (1) what I got back in 2019.
>
> Thanks!
xiaoice
Posts: 51
Joined: Fri Mar 24, 2017 2:38 pm

Re: can capital loss on TFSA be reported on 1040 as capital loss

Post by xiaoice »

Found that I can actually claim the loss under Market-to-Market election on line 14
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