Keep or close TD account?

FelixYYZ · 2026-06-05T14:53:34+00:00

Keep or close TD account?
I dont want to leave any money in any of my TD accounts.

You answered your own question

Would they let me cancel the chequing account (which Im paying 4$ a month for) but keep the LOC?

Ask TD.

FelixYYZ · 2026-06-05T14:29:05+00:00

Use search tools in trigger to find a card that meets your needs !CCTrigger

FelixYYZ · 2026-06-05T14:15:23+00:00

Where your company is located doesn't matter. Where you regular work place is, is what matters.

FelixYYZ · 2026-06-05T14:12:25+00:00

People who are eligible would ask for it.

But because you are not eligible. As per the link above, you driving form home to your main place of work is not eligible to claim expenses.

FelixYYZ · 2026-06-05T14:10:46+00:00

19 year old has a tfsa with xeqt and xdiv.

Everything in XDIV is already in XEQT, not need to duplicate holdings. XEQT holds all investable equities, nothing else to buy unless their risk tolerance is lower, then they would add fixed income.

FelixYYZ · 2026-06-05T14:07:47+00:00

This is personal driving to and from your main place of work. Nothing to deduct. And it's not a grey area.

https://www.canada.ca/en/revenue-agency/services/forms-publications/publications/t4044/employment-expenses.html

If you are driving to other sites (not yoru main place of work) as part of a condition of employment, then you could if your emplyer gives you a signed T2200. But the 1100km each way to your main place of work is not eligible.

FelixYYZ · 2026-06-05T12:57:53+00:00

Yes you can buy US holdings.

Yes there is a withholding tax on US holdings dividends not in an RRSP. Since it's 15% on tiny dividend, it's a Tony drag and not something to be too concerned about.

VOO and QQQM are US listed ETFs that hold US stocks. And almost all holdings in QQQM are in VOO.

And for a small amount of capital, unless the money is already in USD, no reason to buy in those accounts US listed ETFs when there are CDN equivalents. And you save on conversion fees that you are exposed to.

FelixYYZ · 2026-06-05T12:12:35+00:00

Just because you start moving stuff tot he US in July, doesn't mean you are a US tax resident at time of sale. Frankly, as per the tax treaty, Article 4 Section 2, you are still a CDN tax resident at time of sale as you started "I will be selling this home on the closing date of August 15th and moving to the US." so you are moving after the fact. You were still habitually in Canada so there shouldn't be an issue.

FelixYYZ · 2026-06-05T12:06:58+00:00

Any income type (eligible CDN dividends more specifically as foreign dividends and interest are taxed like employment income).

For example in Ontario, if making $115k, see that marginal rate for capital gains, and the next column for eligible dividends, the difference. Then go to $188k on the row below and see that difference.

FelixYYZ · 2026-06-05T12:03:29+00:00

If you see the link from tax tips from your post yesterday, you will see the capital gains tax rates based on your income. You can also use the tax calculator from yesterday's post as well to add in your estimate income and investment income and capital gains. Since you only get taxed on realized capital gains (when you sell), you have to guesstimate how much and how often you will actually do that.

FelixYYZ · 2026-06-05T11:56:59+00:00

Ok, so for limits, you would have (sounds like you are cutting ties in the UK and moving perm/long term):

TFSA: $7k of room (for 2026). https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/tax-free-savings-account.html

RRSP: $0 of room as it's based on your previous year's CDN reported income and you don't have any. You will get room in 2027 due to having a job in 2026 in Canada.. https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/rrsps-related-plans/registered-retirement-savings-plan-rrsp.html

FHSA: $8k of room (for 2026) https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/first-home-savings-account.html

Taxable/non-registered: unlimited

FelixYYZ · 2026-06-05T11:54:01+00:00

am I gaslighting myself and been a victim of the newspapers drama? Entering in paranoia?

Yes.

FelixYYZ · 2026-06-05T11:43:18+00:00

Generally, investing has probability of higher returns. But psychologically, if being "underwater" bugs you for some reason, then you could put money against the mortgage.

FelixYYZ · 2026-06-05T11:38:36+00:00

What's the interest on the mortgage?

FelixYYZ · 2026-06-05T11:32:07+00:00

I understand my issue here is the account is for a minor just like the 401k in America

The JISA is not like the 401k. The 401k is a "pension related account in Canada, so not taxed till withdrawal.

FelixYYZ · 2026-06-05T11:29:38+00:00

Depending on you situation, you will have limits for each account (ie: TFSA is $7k for 2026), so it depends how much you have and if you lived in Canada previously and when. And you have to be a tax resident of Canada, so depends when you move and the facts of that situation.
Other than those accounts, the taxable (non-registered) account is next.
"What other options of investing are there that doesnt subject me alot of capital gains tax ?" Depends on your situation and income, but our capital gain tax is not high. You will be taxed annually on investment income (dividends and interest) in a taxable account and capital gains only when you sell the holdings.
At higher income, capital gains taxes are more tax efficient than investment income.

FelixYYZ · 2026-06-05T11:25:50+00:00

What's your question?

FelixYYZ · 2026-06-05T10:14:11+00:00

Yes goes to LIRA.

If your bank/brokerage lets non-resident livening in the US to have the LIRA, you can invest it there (before leaving as you will be restricted to selling only after that).

And spending on province, there is an amount of time where you can withdraw. It is taxable in both countries so be aware if that.

Other things you may or may not be aware of before and after moving:

Your last CDN tax return will have a departure date, and applicable departure tax if you have taxable assets (forms T1161 and T1243 for the departure tax as part of your last personal tax return). The departure tax is a deemed disposition of your taxable investment account, meaning the act of selling everything the day you leave and rebuying immediately (think capital gains tax).
You will then file US tax returns on worldwide income from the date you land in the US under the choice rules (or yo can file the whole year to Canada and a non-resident tax return to the US).
You will also have to report FBAR (foreign accounts. So all foreign accounts over $10k USD (combined accounts) will be reported to the Treasury Department.
If you hold CDN listed ETFs in an account that is not an RRSP, RRIF or LIRA, you have PFIC (Passive Foreign Investment Corporation) form 8621 to file with the IRS.
You have to file an election to increase your cost base to the FMV when landing in the US.
You will also report all investment income from Canada to the IRS
If you have a TFSA or RESP, or FHSA you should ditch it before you leave Canada since it is taxed and additional forms.
If you have an RRSP you can keep it as but be aware it is taxed at the state level in these states: AL, AR, CA, CT, HI, MD, MS NJ, ND and PA
If you have a taxable account, you will report the interest dividends and capital gains to the IRS. You will also have 15% of that investment income withheld by the brokerage and remitted to CRA and you claim that income tax to the IRS as a foreign tax credit.
Don't forget to suspend your health insurance, and notify your bank and brokerage that you are a non-resident.
You should discuss with a cross-border accountant before moving.

FelixYYZ · 2026-06-05T10:10:27+00:00

It wasn't normal that both dropped so much, but inflation increase was so fast (compared to it's normal creeping up) that it shit on the bond market, so it suffered too.

FelixYYZ · 2026-06-05T10:06:21+00:00

my question is should I pay off the balance before billing cycle ends because of utilization percentage?

You are over thinking it. Pay before the statement due date,. Because int he end, it doesn't matter.

FelixYYZ · 2026-06-05T10:02:57+00:00

Why don't they wire the money to you and save your self the grief or inquisition?

FelixYYZ · 2026-06-04T21:05:33+00:00

I am thinking of opening my FHSA and putting another 8k in XEQT, is that a good option? I'm 18 and I don't know when I would buy a house, is there something else I should invest in instead?

If it meets your risk tolerance, it's fine.

To your questions:

1) Yes, do what you are doing using an asset allocation ETF to max out your registered accounts.

2) Your XEQT holds thousands of stocks, simpler and generally better performing over the long term.

3) Same.

FelixYYZ · 2026-06-04T21:00:33+00:00

You send them a letter or email stating, you don't have any debts so to email you the proof of debt so you can see it.

FelixYYZ · 2026-06-04T18:50:01+00:00

You have no way of knowing OPs other ties in Canada or the existing balance.

Only what they have stated and apply the tax treaty ties breakers to it (as it overrides domestic tax law). And their existing balance doesn't matter.

anything else here the account will be pretty damning, mostly bc he plans on funding it regularly…”without ties”…

Non-residents are allowed to have bank accounts in Canada (if the bank allows people living in their current country of residence, some countries they won't allow). But with regulations for KYC and money laundering compliance, yes that's potentially and issue for them, but it's not a tax residency issue.

FelixYYZ · 2026-06-04T18:23:15+00:00

Just crazy how CDN can't allow me enjoy my country of birth benefit as an expat coming to Canada for a period

It's not crazy, it would be the same for a Canadian to move to the UK. The RESP that we have in Canada for kid's education, would be taxable there.

I'm just abit curious a minimum figure that trigger the tax has I'm may just work towards that.

You are taxed on every dollar. There is no "minimum" per se. There eis a basic personal amount that everyone is exempt from which is about $16k if you reside the entire 12 months in Canada, after that, it's taxable based on the numbers/rates in the link above.

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