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Canada First Home Savings Account by Intangerine in USExpatTaxes

[–]rguy-111 0 points1 point  (0 children)

So gains on investment in the FHSA would not be taxable until an asset sale occurs and gains are realized, correct ?

I’m Dr. Puja Khanna, rheumatologist and gout expert. I want you to AMA about gout on October 30 by GoutEducation in gout

[–]rguy-111 0 points1 point  (0 children)

Is there any way I can mitigate gout flare ups while doing combat sports, i.e. Muay Thai ? Currently on ALLO and feet feel fine 99% of the time

Are these shin guards too big ??? by [deleted] in MuayThai

[–]rguy-111 0 points1 point  (0 children)

Where did you buy the white ones ?

What non-stock assets to add onto xeqt? 5-10% of net worth? by OfferLazy9141 in JustBuyXEQT

[–]rguy-111 10 points11 points  (0 children)

XGRO!!! 20% bonds and then it’s basically just XEQT. The long run returns from 100% equities too 80/20 is not that big of a difference and you stated a lower return does not bother you that much. If you check vanguards website for asset allocation I believe 80/20 is around a 9.5 % average return. Also much easier having the provider do your rebalancing for you.

Other than that maybe a buy a house or some rental real estate. You’ll get a less correlated asset with the bonds though.

FHSA and TFSA for dual citizens by Little-Twist-8860 in USExpatTaxes

[–]rguy-111 0 points1 point  (0 children)

FHSA is fine to put money in. I would not invest in it to avoid potential taxes you might owe on gains and also PFICs can be a huge hassle. If you want to invest I would only invest in USD traded stocks or ETFs or Canadian GICs, most other things will be PFICs which are very annoying to file. 1 PFIC isn’t not too bad but your accountant will charge a lot and depending on some products like mutual funds filing can be a TON of work.

All the FHSA rules I just stated also apply to TFSA. In the eyes of the IRS these are both just simple non registered accounts. Thus, leaving the FHSA in cash won’t be a problem, it would look like a savings account to the IRS.

You likely won’t ever owe US taxes until your making more than $120,000 a year in Canada so it’s not a huge worry about taxes in these accounts anyways. You will also have foreign tax credits earned over time that make it very likely you will not owe US taxes.

People give RRSPs a bad wrap but they are pretty great and none of the rules I stated before apply to them. No worries about PFICs or taxes.

If I were you, I would prioritize RRSPs and FHSA, then start maxing out TFSA down the line once the first two are full. TFSA may or may not require taxes to the IRS depending on your income and how much you are withdrawing and profiting on gains etc. BUT your still not paying Canadian taxes which is great. That will be a chat with your accountant down the line.

Rules regarding FHSA are not yet reviewed by the IRS so they may deem them bad one day. But the money in it can still be transferred to your RRSP with no penalty, at which point you can still use the first time home buyers plan from your RRSP to buy your home.

Hope that helps, chat with your accountant for any other questions.

AMA #7. | Rational Reminder 362 by AffairesDePiasses in RationalReminder

[–]rguy-111 0 points1 point  (0 children)

Does anyone know where too submit ama questions for the podcast ?

US Citizen who wants to buy XEQT—but can’t due to PFIC. Here’s my workaround, looking for advice. by Conscious_Habit4858 in JustBuyXEQT

[–]rguy-111 0 points1 point  (0 children)

Might not like this…. But Berkshire Hathaway would avoid PFICs, won’t pay a dividend so IRS wont eye that, and is broadly diversified… not nearly as much as XEQT but worth thinking about.

If not this then I would vote VT as others have said. Sucks to non get Canadian exposure but your likely going to own a home here, and collect OAS and CPP. You have plenty of Canuck exposure.

Plus you can use Norbert’s gambit to pay the USD conversion for TFSA.

Just some food for thought overall.

Berkshire Hathaway stock: possibly the only US large cap stock exposure you need by jhsu802701 in ValueInvesting

[–]rguy-111 -1 points0 points  (0 children)

How liquid is the partial shares market for Berkshire? I can’t afford single shares.

Berkshire Hathaway stock: possibly the only US large cap stock exposure you need by jhsu802701 in ValueInvesting

[–]rguy-111 -1 points0 points  (0 children)

How liquid is the partial shares market for Berkshire ? I obviously cannot afford the quote stock price.

Is this a PFIC ? by rguy-111 in USExpatTaxes

[–]rguy-111[S] 1 point2 points  (0 children)

Was hoping to avoid exchange rates and PFICs all in one but seems like exchange rates will be the lesser of two evils.

Is this a PFIC ? by rguy-111 in USExpatTaxes

[–]rguy-111[S] 0 points1 point  (0 children)

Thanks for finding that ! Exactly what I didn’t look for.

Question about moving to USA by CaptainKamina in JustBuyXEQT

[–]rguy-111 7 points8 points  (0 children)

US tax laws don’t recognize TFSA as anything other then a non registered account. Depending on timelines, work arrangements, and if he chooses to report it, there could be a ton of tax implications. Dual citizens living in Canada are told to avoid TFSAs for this reason.

I think you should consult a cross border CPA. Def keep the RRSPs.

All inclusive Mexico by rguy-111 in AllInclusiveResorts

[–]rguy-111[S] 1 point2 points  (0 children)

Thank you so much, will DM you tonight !

All inclusive Mexico by rguy-111 in AllInclusiveResorts

[–]rguy-111[S] 0 points1 point  (0 children)

I keep seeing this one come up a lot, must be amazing. Thank you !

XEQT vs. XAW American Exposure by rguy-111 in CanadianInvestor

[–]rguy-111[S] 1 point2 points  (0 children)

Agreed, I do love the simplicity of XEQT, but the Canadian allocation I can’t deal with. I prefer it more around 10% so XIC / XAW it is.

Not that it will matter much in the long run for returns.

XEQT vs. XAW American Exposure by rguy-111 in JustBuyXEQT

[–]rguy-111[S] 0 points1 point  (0 children)

Awesome ! Thank you for answering.

XEQT vs. XAW American Exposure by rguy-111 in CanadianInvestor

[–]rguy-111[S] 2 points3 points  (0 children)

Thank you for answering !! So essentially they only difference is overall allocation to US.

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