请教关于TFSA的问题

[贾和平]

This is a fun fact I am aware of:

- Not only can you not contribute to TFSA anymore when you become a non-resident for tax purposes in Canada, but you also have to withdraw ALL your TFSA to avoid a 1% penalty from CRA. You have to report your total TFSA investment returns ( if you did not withdraw it), including capital appreciation and yield, as global income to the IRS when you do your us tax return.

- The prevailing wisdom is to withdraw your TFSA funds when you leave Canada. This will not trigger global income taxes in the US and penalties in Canada but your TFSA room will remain and can be used at a later date when you return to Canada

- RRSP is a different story. The US treats our RRSP as an investment vehicle for retirement, but the US does not recognize our TFSA even though the US has Ruth IRS, which is similar to our TFSA.

Consult a tax professional is the way to go.

 

[光放]

估计是这样，以前的额度不变，一年中离开加拿大超过183天，就不是加拿大税务居民了，没有新增额度。

猜测

离开加拿大不一定就不是税务居民了。例如你有房产在出租。

 

[ottawa_tj]

Moving to the U.S.: What to do With Your Canadian Investments

Find out how to make the most of your Canadian investments when you move to the U.S.

www.rbcroyalbank.com

 

[ottawa_tj]

This is a fun fact I am aware of:

- Not only can you not contribute to TFSA anymore when you become a non-resident for tax purposes in Canada, but you also have to withdraw ALL your TFSA to avoid a 1% penalty from CRA. You have to report your total TFSA investment returns ( if you did not withdraw it), including capital appreciation and yield, as global income to the IRS when you do your us tax return.

- The prevailing wisdom is to withdraw your TFSA funds when you leave Canada. This will not trigger global income taxes in the US and penalties in Canada but your TFSA room will remain and can be used at a later date when you return to Canada

- RRSP is a different story. The US treats our RRSP as an investment vehicle for retirement, but the US does not recognize our TFSA even though the US has Ruth IRS, which is similar to our TFSA.

Consult a tax professional is the way to go.

You can keep your TFSA if you leave Canada. You cannot make more contributions to TFSA, otherwise you get 1% penalty of the contribution you made. It’s similar penalty to the over contribution as you don’t have contribution room when you leave Canada.

 

[贾和平]

You can keep your TFSA if you leave Canada. You cannot make more contributions to TFSA, otherwise you get 1% penalty of the contribution you made. It’s similar penalty to the over contribution as you don’t have contribution room when you leave Canada.

Are you suggesting OP's son keep his TFSA in Canada? His TFSA is not tax-free anymore and all the investment returns have to be reported as global income when he files his US tax return. Even worse, The US treats our TFSA as if it is a foreign trust and requires complicated filings with tight reporting deadlines and onerous penalties if failing to report them on time.

As a matter of fact, OP has already missed one day to withdraw his TFSA in the 2024 tax year.

Suggesting OP consult a tax professional.

 

[ottawa_tj]

Are you suggesting OP's son keep his TFSA in Canada? His TFSA is not tax-free anymore and all the investment returns have to be reported as global income when he files his US tax return. Even worse, The US treats our TFSA as if it is a foreign trust and requires complicated filings with tight reporting deadlines and onerous penalties if failing to report them on time.

As a matter of fact, OP has already missed one day to withdraw his TFSA in the 2024 tax year.

Suggesting OP consult a tax professional.

I am telling OP that she doesn’t HAVE TO withdraw TFSA and there is no penalty from CRA if she doesn’t keep contributing.

 

[知更鸟]

I am telling OP that she doesn’t HAVE TO withdraw TFSA and there is no penalty from CRA if she doesn’t keep contributing.

Thank you so much to provide detailed and professional answers for my question, I just want to remind my son to be prepared, and it might be useful if I need to leave canada in the future.

Happy new year!

 

[知更鸟]

Are you suggesting OP's son keep his TFSA in Canada? His TFSA is not tax-free anymore and all the investment returns have to be reported as global income when he files his US tax return. Even worse, The US treats our TFSA as if it is a foreign trust and requires complicated filings with tight reporting deadlines and onerous penalties if failing to report them on time.

As a matter of fact, OP has already missed one day to withdraw his TFSA in the 2024 tax year.

Suggesting OP consult a tax professional.

Thank you for your suggestion, I am just curious about this situation, my son is in USA now, he worked half year in Canada and half year in USA, it is the first time he need to deal with this case, hopefully no trouble.

Happy new year!

 

[知更鸟]

估计是这样，以前的额度不变，一年中离开加拿大超过183天，就不是加拿大税务居民了，没有新增额度。

猜测

从税务居民到非税务居民是要填表请税务局批准的，同时提交相关文件，比如美国公司的雇佣合同，并不是居住少于多少天就自动成为非税务居民。