Hi All,
I'm a Canadian citizen on TN-Visa who moved to US full time as of January 2012. I had an accountant do my 2012 returns last year ($$$) and am trying them myself this year.
I decided to close my TFSA and RESP in May of 2013, and transferred the money to a US account. I would like to know how to fill out the 3520-A form, Part III, when it says "end of tax year". Should I just put the value of the account when I closed it in May, or should I put "0.00" which was the balance as of Dec31, 2013?
How would that affect how I report fees, capital gains/losses, etc.
Thanks for your help!
Closed RESPs and TFSA's Mid-Year and Form 3520-A
Moderator: Mark T Serbinski CA CPA
One other comment. The value of my accounts when closed suffered considerable losses (after exchanging my CAD values to USD values for the form) due to currency collapse of the CAD. Is this "currency loss" considered an "ordinary loss"? Do I still have to separately fill out dividend income (line2), capital gains/losses (line 5a or b), as well as "ordinary loss" (line 6) or would it be sufficient to just "net" the difference into an "ordinary loss"?
Many thanks!
Many thanks!
End of year is fo course 0.
Your cap gains and such are calculated just likje any other non-sheltered account.
When you sell investemnts, the gain/loss you report is in USD, based on the difference between the cost (in USD when you bought it) and the proceeds (in USD when you sold). That will take care of any currency losses related to those items.
Cdn cash which you have held since you moved to US (not the proceeds from recent transactions I mention above) can be considered as one sigle "investment" of C$, which had a value when you moved to US and a value when you converted it.
So your "currency loss" would only apply to CASH (Bank accts, GICs, T-Bills, etc) that you held over the past two years. Easiest way to figure is take the average casjh holdings you had over the past 2 years ( again not including recent proceeds from sold investments), and the difference in exchange rate between jan 2012 and the date you converted.
Your cap gains and such are calculated just likje any other non-sheltered account.
When you sell investemnts, the gain/loss you report is in USD, based on the difference between the cost (in USD when you bought it) and the proceeds (in USD when you sold). That will take care of any currency losses related to those items.
Cdn cash which you have held since you moved to US (not the proceeds from recent transactions I mention above) can be considered as one sigle "investment" of C$, which had a value when you moved to US and a value when you converted it.
So your "currency loss" would only apply to CASH (Bank accts, GICs, T-Bills, etc) that you held over the past two years. Easiest way to figure is take the average casjh holdings you had over the past 2 years ( again not including recent proceeds from sold investments), and the difference in exchange rate between jan 2012 and the date you converted.
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
Hi Nelson,
Thanks very much for your response.
Just to clarify, would I use the USD/CAD exchange rate on the date I purchased the security and a different USD/CAD exchange rate on the date I sold the security? If that's the case, my capital gains will essentially be "wiped out" by the lower CAD on the date of sale.
Thanks!
Chris
Thanks very much for your response.
Just to clarify, would I use the USD/CAD exchange rate on the date I purchased the security and a different USD/CAD exchange rate on the date I sold the security? If that's the case, my capital gains will essentially be "wiped out" by the lower CAD on the date of sale.
Thanks!
Chris