Hi everyone,
Here is my personal information:
• I’m a Canadian currently working in the States.
• I have non-registered, RRSP, TFSA, and LIRA investment accounts with BMO InvestorLine.
• I have a permanent address in Canada (my parents’ place, which is also where I live in Canada) and I always use it as my investment account address.
• I have ties with Canada as I live relatively close to the border and visit my parents and friends on a regular basis.
• I work in the States on an at-will offer, and have intention to come back to Canada in the near future.
Here are my questions:
• Can I maintain the non-registered, RRSP, TFSA, and LIRA investment accounts in Canada?
• Can I still trade with the existing money in these accounts without further making any contributions?
Many thanks!
Investment accounts in Canada while working in US
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- Norbert Schlenker
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Re: Investment accounts in Canada while working in US
If the Canadian financial institutions holding your accounts don't realize that you're in the US - and why should they given that you're using an unchanged Canadian address - chances are that there's no problem holding or trading the accounts.
However, you may be setting yourself up for tax woes on both sides of the border depending on where you're a resident for tax purposes. If you're a tax resident of the US, e.g., and your non-registered account is collecting Canadian source income, the financial institution has a legal obligation to withhold and remit Canadian taxes from that income. Meanwhile, income inside the TFSA might be subject to US taxes - federal and state - plus possible state taxes on RRSP/LIRA income plus disclosure requirements to the US about "foreign accounts".
Who are you paying income taxes to?
However, you may be setting yourself up for tax woes on both sides of the border depending on where you're a resident for tax purposes. If you're a tax resident of the US, e.g., and your non-registered account is collecting Canadian source income, the financial institution has a legal obligation to withhold and remit Canadian taxes from that income. Meanwhile, income inside the TFSA might be subject to US taxes - federal and state - plus possible state taxes on RRSP/LIRA income plus disclosure requirements to the US about "foreign accounts".
Who are you paying income taxes to?
Nothing can protect people who want to buy the Brooklyn Bridge.
Re: Investment accounts in Canada while working in US
If the OP is now a tax resident of the USA, the OP as you suggest, has a 'withholding tax' obligation to CRA on Canadian income on assets in Canadian investment accounts, etc.
Rather than financial institutions doing that (since they don't have anything on the OP other than a Canadian postal address), the OP and/or his tax accountant can probably file a Part XIII Tax Return to CRA remitting withholdings to CRA directly and using those as a FTC on 1040 US tax returns.
https://www.canada.ca/en/revenue-agency ... g-tax.html
Rather than financial institutions doing that (since they don't have anything on the OP other than a Canadian postal address), the OP and/or his tax accountant can probably file a Part XIII Tax Return to CRA remitting withholdings to CRA directly and using those as a FTC on 1040 US tax returns.
https://www.canada.ca/en/revenue-agency ... g-tax.html
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Re: Investment accounts in Canada while working in US
What kind of work permit in the US do you have?chelavnzuo wrote: ↑11 Jan 2018 19:52• I work in the States on an at-will offer, and have intention to come back to Canada in the near future.
For the fun of it...Keith