Skip to main content
Message Font: Serif | Sans-Serif
No. of Recommendations: 0
If it's just sitting in a bank account, you won't have to do much of anything for the moment since the Canadian banks pay such scrawny interest. You will however have to check "Yes" on Line 7a of Schedule B. And report the interest credited to you. The Canadian government typically liberates 20% (I forget the number, maybe it's 15%) of your interest as withholding to them. I see this on my Nortel and Royal Bank dividends. You can get a credit against U.S. taxes for this by filling out enough extra forms.

As far as I know, there are no tax issues associated with merely transferring money from Canada to the U.S. You wouldn't want to bring it over the border in cash, because the U.S. Customs Service would become very interested in you, even if your motives were the purest. But you wouldn't do that. Wire transfers are easily arranged, or bank checks.

I happen to have a small account in Canada, because my relatives are there and it is convenient to have access to the Loonie. I can answer "No" on Line 7a since the value of the account is so small. But aside from that, I figure it's easiest just to do everything in the U.S. because I don't have to worry about currency fluctuations, and all my Canadian stocks are listed on the NYSE anyhow.
Print the post  


In accordance with IRS Circular 230, you cannot use the contents of any post on The Motley Fool's message boards to avoid tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions.
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.