Filing implications of US Resident with a Canadian bank acnt

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path
Posts: 25
Joined: Tue Feb 28, 2006 2:22 am

Filing implications of US Resident with a Canadian bank acnt

Post by path »

I am Canadian that is living and working in the US on a green card.
I am try to assess the implications of having an open Canadian bank account?
The account would only carry a minimum balance (ie; a couple hundred $) as my intent would be to use this account to transfer funds from Canada to the US (monetary gifts, rrsp withdraws, cpp checks, etc).
Therefore the interest accrued over the year would be negligible.

Q1
Would I need to file a Canadian income tax statement?

Q2
I understand that I would also need to report this account on the US income tax statement - but I am trying to assess what detail of reporting this will involve.
Due to my RRSP holdings I am already familiar with SCHEDULE B.
Because this account would generate minimal interest - does this mean that I would answer YES to 7C and have to file FORM 3520?
7A - Did you have an interest in a financial account in a foreign country - YES
7B - What foreign country - CANADA
7C - Did you receive a distribution from foreign trust - ?
I am also assuming that I would need to file form TDF90-22.1 and report it to the Department of the Treasury.

This sounds like a lot of hassle for setting up a simple Canadian clearing account.
Please clarify for me.

Thanks in advance
nelsona
Posts: 18311
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Post by nelsona »

Having a Cdn bank account carries no tax or immigration implications.

You already have a Cdn account, and so should be ticking box 7 anyways, and 8891 already handles your RRSP.

A bank account is not a trust account.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing :D
nelsona
Posts: 18311
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Post by nelsona »

and you should already be filing the TD form because of your RRSP.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing :D
path
Posts: 25
Joined: Tue Feb 28, 2006 2:22 am

Post by path »

To summarize - the only income tax filing I need to do is :
* SCHEDULE B : 7A and 7B - which I am already reporting due to my RRSP accounts
* report this new account on TDF90-22.1 - which again I am already filing due to my RRSP candadian accounts
So it looks to be little to no hassle on the reporting side.

Does anyone know if the Canadian banks require Canadian residency?
Does anyone know if I can open an account with a Canadian bank online or over the phone?
ie; I would like to open one now and not wait until my next trip north.

thanks again
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