I will move to USA in the next few weeks. I have >10K CAD in my non-registered saving account (saved for my kid's education in future). Might come back to Canada years later (not sure). What should I do with the cash? Options thinking:
(1) buy ETF (e.g. XEF, XEC, etc) which provides PFIC annual statement;
(2) buy GIC which doesn't require PFIC reporting
(3) convert to USA dollar and deposit to US bank
How complicate the PFIC reporting is? Does it worth to buy ETF in Canada? Thanks!
Moving to USA, how to do with Canadian cash?
Moderator: Mark T Serbinski CA CPA
Check out this https://philosopherc.wordpress.com/2014 ... checklist/ if you have not yet left Canada
Also https://philosopherc.wordpress.com/2014 ... ax-return/ is helpful to determine what your first tax year will look like
Also https://philosopherc.wordpress.com/2014 ... ax-return/ is helpful to determine what your first tax year will look like
1. Since you cannot keep a brokerage account in Canada once you leave, there is no point buying a a Cdn ETF either. You will be forced to ell it at some point.
personally, the dollar isn't going up anytime soon, so leaving it in Canada with that hope is not a great move. Keep a Cdn bank account and credit card for Cdn affairs/trips, and have it funded sufficiently so as not to have to transfer cash to it very often., and bring the rest to US.
personally, the dollar isn't going up anytime soon, so leaving it in Canada with that hope is not a great move. Keep a Cdn bank account and credit card for Cdn affairs/trips, and have it funded sufficiently so as not to have to transfer cash to it very often., and bring the rest to US.
After 20 years, I am severely cutting back on responses. Do not ask specifically for my help. There are a few others on this board that can answer most questions. All the best
OK. That is their current position. They may change their policy at any time and insist that you close the account.
make sure you still keep a straight bank account and credit card, too.
make sure you still keep a straight bank account and credit card, too.
After 20 years, I am severely cutting back on responses. Do not ask specifically for my help. There are a few others on this board that can answer most questions. All the best
I would choose #3 if I had the chance to re plan my US move.
Just look at the number of forms below you may have to file from that URL if filing 1040. ETF will require 8621 Fbar 3938 already with 10k+ amount.
If you have time left, convert to USD at a favorable rate or if there's no time left just find the highest interest saving account in CAD.
10K is not worth the hassle of doing these forms when each one can cost $300-500 per form if done by professional, the earnings from 10k will be eaten away by those fees or your time spent x your hour rate.
Just look at the number of forms below you may have to file from that URL if filing 1040. ETF will require 8621 Fbar 3938 already with 10k+ amount.
If you have time left, convert to USD at a favorable rate or if there's no time left just find the highest interest saving account in CAD.
10K is not worth the hassle of doing these forms when each one can cost $300-500 per form if done by professional, the earnings from 10k will be eaten away by those fees or your time spent x your hour rate.
keeping $100K in cash is never a wise investment, regardless of the currency
As I said, put a decent amount in a Cdn checking account and have a credit card, and get the rest into US working for you and growing tax-free, like in your Roth, your house, etc.
As I said, put a decent amount in a Cdn checking account and have a credit card, and get the rest into US working for you and growing tax-free, like in your Roth, your house, etc.
After 20 years, I am severely cutting back on responses. Do not ask specifically for my help. There are a few others on this board that can answer most questions. All the best
I am thinking to convert CAD cash to USD from time to time, instead of all-once because of the low exchange rate. In that case, I would still have quite large CAD available in cash.
How complicated the PFIC reporting would be if I invest ~ 50K in mutual fund or ETF in Canada now, right before I move to USA. I won't use this money for at least 5 years...
How complicated the PFIC reporting would be if I invest ~ 50K in mutual fund or ETF in Canada now, right before I move to USA. I won't use this money for at least 5 years...