Hello, I recently moved to Canada from Seattle, USA. Over the years while in the US, I invested heavily in FANG stock using Robinhood. Robinhood only allows US Resident with SSN to open trading account. Now, I don’t have valid US address but I do have valid SSN. Robinhood at the end of year gives 1099 B for any capital/dividend gains and losses. I have seen people using Robinhood even after moving to different countries. I am not sure if it is allowed. Is it legal if I report my taxes using 1099 B while not updating address in Robinhood? I am concerned that my hard earned money will be in trouble if I follow this path. I would appreciate if anybody could share similar experience. Did you move your stocks from Robinhood to other brokerage which allows holding US stocks while you are away? If yes, please list the name of brokerages. I didn’t find relevant information on Robinhood forum. I want to know before, if Robinhood is hostile to people in such situations. I would be happy to transfer but would love to save the trouble if it’s okay to keep going. Thank you for your help.
Your former state may come after you for state taxes. If you were in CA, VA, IL, or such nine cash hungry states, you must explicitly break all ties (end tax domicile) to prevent state tax headaches. Keeping an older address leaves that door open. Such an account open may violate the Robinhood policy after a grace period, but not illegal otherwise, I think.
Why did u move to Canada? Visa issues?
Yes, one of the lucky person from H1 lottery system.
:(
Which IRS rules? Many people leave US and keep funds in 401K or IRA or old trading accounts. Other than finding a brokerage which will allow foreign addresses (many do), what rules are you talking about? If you report trades and pay taxes, what rule are you violating? Please share a link if you have one.
IRS is not home land security office or USCIS. It has no right to ban anyone from entering the nation nor blocking people’s green card application. And international investors can invest US stock. The only thing wrong is op shouldn’t even pay any Federal tax.
Open an account with a Canadian broker and transfer the stock to it. A 1099 is useless for Canadian tax and transferring is easy. Not having the right tax form means you will have to calculate all the taxes by hand. The receiving broker will handle everything.
any recommended Canadian Brokers ?
@md9 what did you finally do ?
OP what did you do finally?
Op?
Hi Buddy, curious to know, what did you do. In same boat. Is it safe to use RH from Canada after moving from US to Canada? or are you still using RH from Canada and looks fine?
Okay Op back to blind here. Robinhood forced me to close the account. No it’s not possible to keep RH. Instead use IBKR Canada. I tried transferring to questrade but RH didn’t complete the process on their end and kept complaining about not understanding Canadian transfer from the Canadian broker. TLDR: it does seem RH serves only hedge funds and gives preferential treatment to big players
Why don’t you ask Robin Hood what their policies are?
May not be good idea, if I can report taxes properly, I could still enjoy 0 commission trading? I might move to US after a year, so may not worth the trouble?
You might be in violation of their policies. So keep that in mind