TN visa in US and investing in TFSA in Canada
Hello Blinders! Is anyone in same situation as I am? I am in the US working on TN visa. I have about 75k room in TFSA still. Wondering if there is any issue if I invested in TFSA while working in the US on TN visa. I hear many say that there are some tax related complications so they removed all money from TFSA before coming to the US on TN. If so would you please share where did you invest that money? Thank you for your input 🙏 L 64 TC: 270k
man why would do it? TFSA/RRSP makes u unable to claim status of non-resident in Canada, which means u will be pay the higher tax of both. If you dont have any of those, you can still have a cheq account and credit card in Canada. If you dont claim nonresident status, you will be paying income tax to your home province in Canada, and also US income tax, its not double but the higher of each. A good example would be, if your home in BC, and work in Seattle, with nonresident, you only pay federal tax in US, but without that, you have to pay the remaining Canada tax minus the one you paid in US to CRA..
Is it true for RRSP as well? Thats not what my accountant said for RRSP (at least what I understood). Are you sure?
ops my bad, just did a check, u can still hold rrsp..
You can still hold your RRSP and the US respects the tax benefits. However, certain states do not recognize it and will tax you on realized capital gains in your RRSP, such as California.
Thanks 👍
@CEOofGoogle, do you know if Washington state tax on RRSP gains?
What's the tax consequences if I keep my TFSA open holding some stocks? I don't plan to immigrate to US or declare non residency in Canada. I would love to keep as much tie in Canada as possible but is it financially unwise?
Are you moving to the US on a TN visa? In that case you did immigrate to the US in the eyes of the tax law. You will be a US resident and Canadian non-resident for tax purposes. You will have to pay US taxes on any realized gains in your TFSA. You will also have to file form 3520-A, every year which has a 10k USD penalty if you do it wrong or file it late.
Don't do this. You should close your TFSA fully (don't just leave it open but empty). 1) The US does not recognize the tax-free status of TFSAs owned by US residents 2) The US recognizes TFSAs as "foreign trusts", which means you have a bunch of extra tax reporting to do each year with big fines if you mess up You should withdraw all of the money in your TFSA and just put it into a US taxable brokerage account. Then, be sure to also maximize all US tax shelters accounts. 1) Traditional 401k with company match 2) Backdoor Roth IRA 3) Mega backdoor Roth 401k 4) HSA (if applicable)
Thank you for the info! I assume having money in RRSP is safe, right?
+1, Deloitte advised me to close TFSA for same reason, they said we can’t do your taxes if you have TFSA - fuck yourself