Dual US/Canadian citizen residing in Quebec-Canada.
For many years I have avoided TFSA since they would end up being taxed in the US and there would be no benefit to their tax free status in Canada.
BUT....!!!
I just saw an interesting posting from someone in a similar situation that caught my attention. It says:
"For TFSA, I use US muni ETFs with tax-exempt dividends; they're not earning much this year, but in this way they're tax-exempt on both sides of the border."
Is this true? If someone looking to keep some money low risk muni ETFs--it would be nice to enjoy tax-free status on both sides of the border!
-hodini
Munis in TFSA
Moderator: Mark T Serbinski CA CPA