Form 3520 for Canadian Non-Registered Accounts

royroy · Post by **royroy** » Fri Apr 12, 2013 4:27 am

Hi there!

I'm attempting to sort through my taxes this year, and I am a little confused. I know that I need to file Form 3520 for my TFSA this year. I also have some money in a non-registered account - do I need to include that on Form 3520?

Thanks!

nelsona · Post by **nelsona** » Fri Apr 12, 2013 6:31 am

no, that account is not a trust. You do need to include it in FBAR, and of course report any income it dgenrated (just like tfsa).

If you have mutual funds in either account, you also need to do PFIC reporting.

royroy · Post by **royroy** » Fri Apr 12, 2013 6:44 am

Thanks for the prompt response!

On a related note, I want to dump all my accounts save for my RRSP. But i just realized that broker probably isnt licesed to deal with U.S. residents. Am I screwed from selling?

nelsona · Post by **nelsona** » Fri Apr 12, 2013 8:42 am

Not prevented from selling. You can also have your new US broker transfer your non-mutual fund holdings to US. you will need to sell your mutual funds.

I assume you have correctly filed your Cdn departure return, with deemed disposition taken care of, and that you will send a check to CRA for any NR tax that should have been withheld from any dividends that were paid to you as a non-resident of canada. since your broker would be unaware that you were non-resident.

royroy · Post by **royroy** » Fri Apr 12, 2013 11:40 am

Yup, I handled things in Canada mostly correctly (save for not getting the NR4).

I bungled the us taxes though, including not filing the 3520a by March 15. Hope the IRS is lenient on this one.

Thanks for the help!