Gameplan for TFSA

[agrisiva]

My spouse and I have TFSA accounts with a discount broker invested in ETFs. We are becoming US Legal Permanent Residents end of this month. We would like to keep our accounts for our future retirement in Canada. This forum and senior members are awesome, and I went through several threads on filing requirements, and this is what we are inclining to do with our two accounts. We sold our winners and bumped up the cost basis already.

File these forms end of the year and pay full taxes to the IRS.
- FBAR
- 8938
- PFIC 8621 for my ETFs
- No, not going to file 3520/3520A

I will appreciate any thoughts or comments....

[taxesarehardd]

One thing to keep in mind if you are long term green card holder (LPR) is that the TFSA could be subject to exit tax when you move back. Also, I am not sure why having PFICs is worth it, there are plenty of US etfs you can buy that will avoid this headache.

[agrisiva]

thanks @taxesarehardd for your comments. When you said US ETFs, did you mean the ones that trade in NewYork that I can buy after I convert my CAD to USD within my Questrade account?

[cadusd]

Curious, also a LPR from Canada. Did you still end up keeping your TFSA?

[agrisiva]

yes, we both still our TFSA accounts. I am waiting for my positions to turn positive as I don't want to sell them and lock-in the paper loss.

[mariarand]

Like many investment advisors, Adrian Mastracci considers tax-free savings accounts an important part of a total financial game plan.

[Phisixkl]

Adrian Mastracci, like a lot of investment advisors, views tax-free savings accounts as a crucial component of a comprehensive financial strategy.

[timelyagenda]

If you have a long-term green card (LPR), one item to consider is that you may have to pay exit tax on your TFSA when you go back. As I don't want to sell them and lock in the paper loss, I am waiting for my positions to become positive.