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TFSAs get good tax treatment in Ottawa, not Washington DC
Related: Coming clean to the CRAIn addition, the TFSA may be considered a foreign trust by the IRS. If it is a trust, you will also be required to file Forms 3520-A & 3520 each year to report the account. If you own mutual funds or exchange-traded funds (ETFs) inside of any account other than a retirement account, you will need to sort out whether you are subject to Passive Foreign Investment Company (PFIC) rules annual reporting.
Related: TFSA and RRSP investing tips for Green Card holdersThe next question is, if you expatriate, you will need to figure out whether or not you are a covered expatriate who will be subject to the U.S. Exit Tax (deemed disposition) of your assets, including your TFSA accounts. A cross-border tax lawyer can help you with your specific case. MORE ABOUT ASK A TAX EXPERT:
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