Hi there,
I moved to the US in September 2023 (last year). At the time, the advisor that I talked to didn't give me proper advise and I didn't know about the whole complication around TFSA accounts, so I left without touching them. Later on, I realized about the whole complication. I was so stressed and talked to 3 to 4 accountants and each gave me different ways that I can file the taxes and all the prices were too high. I went with one accountant that mentioned will file a 8833 and take treaty position for my TFSA accounts. She said that this way I can keep them growing and I don't need to report them to IRS. For 2024, I have started right now to find a solution and understand how the form 8833 works since based on some research and talking to one accountant and a financial advisor, I have gathered that I need to file 8833 every year if I keep my TFSAs. This is a costly form for accountants and they charge 300 to 500 to file this, even though the form is not much to fill!!! Moreover the accountant I talked to recently, told me no matter what when I sell my positions I still need to report capital gain to IRS and pay taxes!!! This brings me to square number one. I thought that 8833 releases me from paying taxes on those accounts. I'd like to get more clarification about how 8833 works and if this is true that I need to pay taxes on sells no matter what? If so, I should probably close my accounts right away, pay the tax today and bring my money to the US and leave that in a regular brokerage account. Could you please give me some information / guidance? This last year has been very costly for me and I cannot afford paying huge amount for tax filing anymore especially if there is no gain at the end. Thank you
Moved To the US in 2023 without closing TFSAs
Moderator: Mark T Serbinski CA CPA
Re: Moved To the US in 2023 without closing TFSAs
There is no treaty position regarding TFSAs. They are pay taxes as you go in US eyes.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing
Re: Moved To the US in 2023 without closing TFSAs
hi,php_acc
TFSA reporting is giving me a headache too. Do you find a proper accountant to handle it? Anyone has recommendations for a reliable and skilled accountant to help reporting TFSA?
TFSA reporting is giving me a headache too. Do you find a proper accountant to handle it? Anyone has recommendations for a reliable and skilled accountant to help reporting TFSA?
Re: Moved To the US in 2023 without closing TFSAs
I'm actually in need of that as well. I am in the process of selling all the positions in my TFSAs and move the cash to the US. To make sure, for 2025 the taxes are clean. I just want to make sure there is nothing else I need to be aware of before selling everything and I only need to report the capital gains/losses. Is there any other gotcha here? Also I do not want to touch the filing for 2023 since IRS has accepted it.
Re: Moved To the US in 2023 without closing TFSAs
Is it necessary to file 3520?
Re: Moved To the US in 2023 without closing TFSAs
you will likely need 3520 and 3520A. Get a EIN first and then prepare and file the 3520s.
This form is not complicated you can do it yourself.
If you had Canadian MFs or Canadian domiciled ETFs then you will need to do PFICS reporting and you will need a professional for it.
This form is not complicated you can do it yourself.
If you had Canadian MFs or Canadian domiciled ETFs then you will need to do PFICS reporting and you will need a professional for it.