To the best of your collective knowledge, is there likely to be any contemplation on the part of the IRS of extending favourable tax treatment to TFSA accounts? I recognize that this may be a non-starter as unlike the RRSP, the TFSA has no obvious equivalent account type in the US.
The growing opportunity cost of foregoing this account type as a consequence of US citizenship, combined with the double taxation imposed by the Net Investment Income Tax, is becoming vexingly material for NR dual citizens.
Favourable IRS tax treatment of TFSA accounts?
Moderator: Mark T Serbinski CA CPA
TFSAs and the Roth IRA have a number of similarities, but are different enough that I would not expect any defferential treatment of TFSAs by the IRS as long as that is true. And, given the present U.S. Federal financial situation (deficit & debt), I would not expect to see any changes to the U.S. Roth IRA anytime soon.
Agreed. It was rather short-sighted of the Cdn Treasury to not get wording in the 2009 protocol that would have covered this "future" account.
My guess is that the next protocol (10 years form now probabaly) will address it, after which CRA will invent another account flavour that is not covered.
My guess is that the next protocol (10 years form now probabaly) will address it, after which CRA will invent another account flavour that is not covered.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing