Clarification on TFSA reporting

malachirobertson · Post by **malachirobertson** » Wed Apr 02, 2014 4:20 pm

Hi,
My mother-in-law had a simple TFSA account of about $9000 CAD that accrued monthly interest. The only oddity in the account is that from February to May 2012 she had the money transferred to a TFSA short term GIC. She died in July 2013. The account was closed in August 2013 and the income transferred to a general savings account of which my wife became the owner. So we come to my inquiry. I was just going to report the interest on her tax forms for 2012 and 2013 and then the interest after death on my wife's tax form. Now I see all this mention of a 3520 form and the consideration of the TFSA as a trust. I am lost. How does one report this simple interest from the TFSA? Thanks.

nelsona · Post by **nelsona** » Wed Apr 02, 2014 6:13 pm

The issue is that TFSA is a trust, and from the time dhe baecame a US resident (I don't think you have ever spelled out exactly when that was), she has trust (3520) income (1040) and possibly, if she helf mutual funds in it PFIC issues, as well as foreign reporting.
There are plenty of posts that ddress this. happy browsing.