US Tax Resident w/ Canadian TFSA

solea · Post by **solea** » Fri Jan 31, 2014 6:17 pm

I'm a Canadian citizen who is a tax resident in the US for 2013.

The only account that I have remaining in Canada is a TFSA and it's value is less than $10,000. I've been hearing mixed messages like if it's less than 10k you don't need to file vs. you always need to file with a foreign account. So do I need to file a FBAR or some other form for this?

Thanks

nelsona · Post by **nelsona** » Fri Jan 31, 2014 6:21 pm

While it does not meet FBAR standard,m it is both taxable in US, and considered a trust, requiringf special reporting in US, as well as its internal holdings.

Since you can alwsys put back the amount you take out, you should collpase your TFSA as soon as possible, as it is not benefitting you at all while in US, and is making you liable for penalties.

solea · Post by **solea** » Fri Jan 31, 2014 6:28 pm

Thanks nelsona.

If this shouldn't be filed under FBAR. Where/how on my US tax return should this be reported? This doesn't seem like a foreign financial asset (seems to be even higher qualifying amounts, 50k)?

nelsona · Post by **nelsona** » Sat Feb 01, 2014 1:17 am

It is a trust, so requires 3520 form reporting. And any income in the account, interst dividends and cap gains, is reported just like any other non-sheltered account.

Get rid of it, asap.