How can a Canadian, who is also a US Citizen, determine which Canadian investments (stocks, bonds, mutual funds, ETFs, REITs, etc.) are tax-efficient (especially considering PFIC rules) for a) a post-tax investment account, and b) for an RRSP (retirement savings) account? Assume the accounts are at Canadian brokerages. Assume the Canadian is current on filing and paying taxes in both the USA and Canada.

I understand that US Passive Foreign Investment Company (PFIC) tax rules make some exchange-traded funds (ETFs) and mutual funds difficult and uneconomic to hold. The question is about applying the PFIC and other tax rules to the choice of which securities to invest in.

N.B. this answer to "I guess I'm American (by birth). I'm Canadian… my investment company is asking [for an SSN]" explains the pitfalls for the US citizen resident in Canada. It also talks about some problems not being current on filing and paying taxes in the USA as well as Canada. It does not explain how to apply that knowledge when choosing investments.


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