Munis in TFSA

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hodini
Posts: 16
Joined: Thu May 17, 2007 11:27 am

Munis in TFSA

Post by hodini »

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
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