Wealthsimple Joint Cash Account

[jriddy]

My (CA citizen, US NRA) wife wants to open a joint cash account with wealthsimple, but I (US citizen, CA PR) worry that this might be considered a passive investment account under US tax law. Does anyone know anything about this?

What are the rules for having savings accounts, and what qualifications do they need to meet to avoid the passive investment tax penalties?

[nelsona]

It is a PFIC.

[nelsona]

Have it only in her name

[jriddy]

Is there a good summary somewhere of what investments I *can* touch in Canada without involving deep IRS complications? Other than bank savings accounts, employer-sponsored RRSPs, and general personal investments like real estate, I'm not sure where to look

[nelsona]

You can have private RRSPs, and you can hold individual stocks. Mutual funds and Cdn based ETFs are generally to be avoided. That is not to say that you can't have any investment, but other than the ones mentioned, you are getting into heavier IRS reporting.