Mentioning that your advice only applied to a very small subset of Canadian residents with the specific attributes you now list and which may or may not apply to the poster you were replying to would have been helpful and avoided this sidebar.Optimizer88 wrote: ↑ I do not know the OP. But many Canadians who winter in the States when they retire, etc. do need to consider the residency issues and potential PFIC issues even if they are not US filers when younger - which is why many professionals are recommending it. I agree it can be unnecessary if the laws stay exactly as they are now, and they never plan to have any need to file US taxes.
Holding US listed(not USD denominated because plenty of PFIC listed on TSX can be USD denominated) ETFs inside RRSPs can be advantageous for tax withholding and tax efficiency reasons. Similarly holding Canadian equity ETFs in unregistered can be beneficial due to the favourable treatment afforded to Canadian dividends in comparison to foreign income which is taxed at an investor’s marginal rate. Doing the opposite with no US tax filling obligations seems counterproductive.I can't think of a case where it is counterproductive unless it would require shifting assets and incurring capital gains to do so.
Indeed every individual’s tax situation is unique and it is best not to project one’s own situation onto others, or at least not without specifying the reason for the recommendation. Recommending talking to professionals is all well and good but I’d wager many RFDers don’t use an accountant and those that do are highly unlikely to have one that specializes in cross border issues. Understandable since many have no need.