Canadians with US citizenship have several things to consider regarding investments:
- Canada's Tax-Free Savings Account (TFSA) is not considered tax free by IRS, and filing taxes may significantly harm the gain.
- PFIC taxation applies for purchasing non-US (i.e. Canadian) products (stocks, mutual funds, etc.).
What is the generic "best case" scenario for married Canadians, when one partner happens to be a US citizen, for minimizing taxation in this case?
- Shared bank account - yes or no?
- US citizen should contribute only to RRSP - yes or no?
- Use US citizen's TFSA only for USD investments - yes or no?
- Open bank account in the US - yes or no?
(I'm asking for the right thing to do - not for evading.)