Canadians with US citizenship have several things to consider regarding investments:

  1. Canada's Tax-Free Savings Account (TFSA) is not considered tax free by IRS, and filing taxes may significantly harm the gain.
  2. 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?

In particular:

  1. Shared bank account - yes or no?
  2. US citizen should contribute only to RRSP - yes or no?
  3. Use US citizen's TFSA only for USD investments - yes or no?
  4. Open bank account in the US - yes or no?

(I'm asking for the right thing to do - not for evading.)

  • Is the Canadian spouse subject to the US laws? – littleadv May 29 '16 at 5:13
  • @littleadv no (not yet) – shorea2 May 29 '16 at 22:38

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