Personal Finance & Money Asked by Simonicus on December 5, 2020
I’m dual citizen (US & Canada) residing in Canada. I returned to Canada two years ago. I just started thinking about investing again in Canadian equities (either stocks, ETF’s or mutual funds). Then I found out about
the tax reporting requirements of form 8621. From what I read online it seems that completing this form for each of your Canadian investments
is too complicated and you’ll end up spending more money having your taxes prepared than you can get from the investments. So my question is, if I buy US
equities from my Canadian brokerage account do I still have to get the from 8621 completed or are these investments treated the same as my equity
investments in my US brokerage account?
I'm not a professional, but my understanding is that US funds are not considered PFICs regardless of the fact that they are held in a foreign brokerage account.
In addition, be aware that foreign stocks are not considered PFICs (although foreign ETFs may be).
Answered by Yosef Weiner on December 5, 2020
Mawer is a Canadian firm and MAW108 is traded primarily on the TSE, so yes, MAW108 is a PFIC to the IRS and should be avoided by people like you and me (people with US tax liability for life through our citizenship).
Answered by Amanda Debler on December 5, 2020
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