TFSA and mutual funds and nonresidency

mappiq · Post by **mappiq** » Tue Jan 24, 2012 3:21 pm

I am a Canadian citizen, studying in the US (on a J-1 status). Right now I am considered a Canadian resident (for tax purposes). I assume that I am still therefore allowed to buy mutual funds with my bank, put money into TFSAs, etc. Correct?

If I eventually give up my Canadian residency, I know that I cannot put money into my TFSAs. Would I still be allowed to buy TFSA stocks/mutual funds with money already in my TFSA accounts? to buy stocks/bonds/mutual funds outside of TFSA?

Thank you very much for any help you can give!

nelsona · Post by **nelsona** » Tue Jan 24, 2012 4:29 pm

You are allowed if your bank is comfortable dealing with you while you are physically in US. You must tell them that you are in US when you call.

As I said, once you are US tax resident you will wantr to clolse your TFSA, since it is neither tax-free in US, and is a reporting nightmare. You can replenish what you took out when you get back to canada.

mappiq · Post by **mappiq** » Tue Jan 24, 2012 4:41 pm

I see. Thank you.
So I can keep my TFSAs and put money into them (etc) for now. But in December of my 5th school year (December 2014 if I started Sept 2010) you would strongly advise that I close all my TFSAs. Is this correct?

nelsona · Post by **nelsona** » Tue Jan 24, 2012 4:58 pm

If your bank allows you to continue, yes. Note that massachussets may want to tax you on this account, if you live there.

Gloria29 · Post by **Gloria29** » Wed Feb 29, 2012 3:29 am

Mutual fund prices today are rarely the same as they were the day before, and are highly unlikely to remain the same tomorrow. The best place for you to find mutual fund prices today is going to be the Internet, and after that, the finance section of your local newspaper.