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Subject:  Re: moving to the US... Date:  8/30/2001  4:14 PM
Author:  TMFKaren Number:  8608 of 15440

I'm moving from Canada to the US. I won't be going back to Canada.

I have all my money (stocks, funds, cash) in Cda in C$ in a Cdn bank.

What do I do with my money? To avoid any taxes or losses?

Dear AH,

Canada is such a lovely country. I'm sure you will be sad to leave. As for leaving your money, that is up to you. You might want to do a little financial analysis, or consult with a tax professional to explore your options.

If you are planning to invest in the US, and are not a citizen, this Fool FAQ will explain how to go about it:

There are links at the bottom of the FAQ for further questions as each situation can be unique. Here is some more information about brokers

The following brokers accept foreign accounts. In addition to a new account form, most require you to fill out a W-8 and Form 1001. The forms are usually available online at each site. We can't recommend any one broker, but you can research and discuss them by visiting our Discount Brokerage area, located at

Datek Online:
Go to the Apply Now page at:

Web Street Securities:

Mr. Stock:

Quick & Reilly:


First Trade:


All brokerage houses, corporations, banks, and any other financial institutions are required to withhold 30% (or a lower rate...if there is a Tax Treaty in force with your resident country) from all non-residents from interest and dividend income. There is not withholding from capital gains.

Non-resident aliens are generally taxed on income from sources within the US. Interest and dividends from US based companies are considered to be "sources within the US".

For additional information, you can check out IRS Publication 519 "Tax Guide for Aliens". You can read that publication if you visit the IRS web site at:

You can't purchase mutual funds if you are not a US citizen, but you can consider an Exchange Traded Fund. ETFs (Exchange-Traded Funds)are securities representing baskets of stocks, often tied to an index.

Here is a bit more on ETFs:

Our index fund section and discussion board might offer some further guidance:

If you are looking for US companies as investments, I'd recommend you look into TMF Select, a new research product. Each month a different kind of company is profiled for your consideration. For more information, or to try it at the charter subscription rate, go to:

Fool on!

Karen Kosoy
TMF Karen
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