So I phoned my Investors today and they said they have to close out my account. That they can no longer help me with my money as I am moving to America. I have a considerable amount for a person of my age due to family inheritances.
Is this money going to be taxed when I bring it to the states?
How would I handle bringing it there.
Is investing in the states like it is when you invest in canada with brokers/investors.
Can I put it in a high intrest savings plan to regrow the money quickly?
Bcause the markets went down I have lost a fair amount of money, is it better to wait and watch the exchange till there is a really good day to change it over or is there something I can do legally and keep the money here in canada by putting it in something else like a high intrest savings or something like that where I will not take the money out and it will just grow. Which is basically what my investors were doing.
Really confused on what to do with this and I dont want to lose anymore than I already am, as this money is for financial stability in my future and my present.
Bank can't handle investments anymore, not sure what to do.
Moderator: Mark T Serbinski CA CPA
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ExpatAmerican
- Posts: 45
- Joined: Tue Aug 11, 2009 10:48 am
Not quite sure of your intentions, but if your desire is to keep your current investment account holdings in Canadian dollar-denominated investments, then moving them to the US could force you in to (a possibly) unfavorable currency conversiion at this point., as very few US brokers will accept (or have the ability to hold) Canadian dollar securities (non-interlisted), or Canadian dollar cash balances. Clearly no one knows if/when the optimal time would be to convert to US$ (assuming that is your ultimate goal), but if your intention is to stay in Canadian dollars (for the time being and/or to avoid/defer the cost of converting), then it might be better to go with an advisor who can hold all of your Canadian dollar securities (save open-end Canadian mutual funds, which as Nelsona mentioned, must be sold), without selling them. There are very few that I am aware of that can deal with US and Canadian listed securities (and hold both/either US and CAN$ account balances) except Darrell Thompson at Blackmont Capital Corp. (for US residents). He can be reached at 866-775-7704.
ExPat Yank
ExPat Yank
I've read in several places that mutual funds must be sold. Why is it that stocks can be held, but mutual funds must be sold?
What are the ramifications if they are not sold right away?
(for example, if someone moves to the US, doesn't realize that they were supposed to sell the mutual funds, and a year later comes to this realization).
What are the ramifications if they are not sold right away?
(for example, if someone moves to the US, doesn't realize that they were supposed to sell the mutual funds, and a year later comes to this realization).
Its not so much that they MUST besold, its simply while winging down the account, you can't transfer MFs to a US broker, while stocks you can.
So, since you can't buy new MFs in yourCdnaccount, and you can't trade them for other MFs,. then the only option is to 'eventually' sell them. Sell orders can be made by US residents without issue.
Whether you wait to do this or not is up to you and your broker. Most want you off the books as soon as possible, due to the regualtory headaches you bring them. But once you become non-resident, you report these as deemed disposed on your departure return, and then they are treated, for tax puposes like any other investment held by a US resident.
So, since you can't buy new MFs in yourCdnaccount, and you can't trade them for other MFs,. then the only option is to 'eventually' sell them. Sell orders can be made by US residents without issue.
Whether you wait to do this or not is up to you and your broker. Most want you off the books as soon as possible, due to the regualtory headaches you bring them. But once you become non-resident, you report these as deemed disposed on your departure return, and then they are treated, for tax puposes like any other investment held by a US resident.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing 
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ExpatAmerican
- Posts: 45
- Joined: Tue Aug 11, 2009 10:48 am
The reason that stocks (in most instances) can be transferred to a US broker is because (most) stocks, like most exchange-traded securities, are eligible and cleared for purchase/ownershiip by both Canadian and US residents. Canadian open-end mutual funds (as per the prospectus) are legal for Canadian residents to buy and hold, but not US residents, hence the dfferent treatment when transferring. The same thing would happen if you had stocks and US open-end mutual funds in the US and moved to Canada. The stocks could transfer, but not the OE funds for the same reason.
Now remember, on the other hand, just because a US firm will accept your Canadian stocks does not necessarily make that a wise or inexpensive choice. If they do not offer Canadian dollar balance accounts (and I know of only 1 single firm that does), then all Canadian $ dividends will get converted to US$ when paid, as well as any sales proceeds will be converted. There is a signficant cost to this, of course.
Now remember, on the other hand, just because a US firm will accept your Canadian stocks does not necessarily make that a wise or inexpensive choice. If they do not offer Canadian dollar balance accounts (and I know of only 1 single firm that does), then all Canadian $ dividends will get converted to US$ when paid, as well as any sales proceeds will be converted. There is a signficant cost to this, of course.