TFSA holding GIC's. how to enter on 8891?

pdfc · Post by **pdfc** » Sat Apr 13, 2013 5:33 pm

How do I enter my TFSA GIC's on the 8891 form and amount earned on the 1040?

Taxpoor · Post by **Taxpoor** » Sat Apr 13, 2013 5:36 pm

You don't.

8891 is for RRSP elections.

nelsona · Post by **nelsona** » Sun Apr 14, 2013 7:58 am

TFSA's are not shelterd in US: you pay US tax on it,
And you might have to file 3520 on it tas well. And it is a foreign account for FBAR.

testone · Post by **testone** » Sun Apr 14, 2013 8:41 am

"And you MIGHT have to file 3520 on it as well." (Emphasis added)

If a U.S. citizen living in Canada with no aggressive positions on their tax return doesn't file a Form 3520 for a TFSA but does include all of the TFSA income on their 1040 and files an FBAR and an 8938 (if applicable) for the TFSA, what do you think the odds are that the IRS would impose penalties for failing to file the Form 3520?

Even if the IRS were to impose penalties, what do you think the odds are that a court would uphold those penalties?

nelsona · Post by **nelsona** » Sun Apr 14, 2013 9:40 am

Really!? You rather go to court than pre-emptively file 3520?

testone · Post by **testone** » Sun Apr 14, 2013 9:50 am

I might get in a car accident and die every time I drive a car. Yet I choose to drive a car because I believe that the odds of dying are low. I make a lot of decisions based on the odds.

pdfc · Post by **pdfc** » Sun Apr 14, 2013 4:14 pm

Thanks for the confirmation on the 8891. that is what i thought.
The amount earned in the TFSA was $300 one year and $110 another so it amounts to nothing. Certainly comes under the $1500 allowed. My confusion now is where to claim that interest on the 1040.

nelsona · Post by **nelsona** » Mon Apr 15, 2013 10:54 am

Not sure what "$1500 allowed" is.

@testone: save it for another website.