# Keeping TFSA and moving to California



## saxondale (8 mo ago)

Relocating to California for work and would like to keep the $100k I have in my TFSA.

I'm aware that the TFSA is taxed in the US on both the federal and state level, however the investments I hold do not generate taxable events (no dividends and no capital gains). They're swap-based ETFs (code: HXS.U.TO) which are legal in Canada but I'm unsure of their status in the US.

Is it just a case of filing the paperwork that I have the accounts and no tax is due?


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## JustLurking (Mar 25, 2015)

This document probably tells you what you need to know specifically for HXS and US federal tax:

Horizons ETFs - Horizons ETFs as PFICs, and U.S. Persons Making QEF Elections

Beyond that, be sure to read up carefully on the US's nasty PFIC tax rule, to make sure that this and anything else you own isn't tripped up by it. In particular, stay alert to the possibility that over time, and if not handled carefully, PFIC tax can consume 100% or more of your actual investment gains.


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## saxondale (8 mo ago)

Thank you so much. I had no idea that Horizon ETFs fall under PFIC.

That kills the idea for me as the reporting requirements are too onerous and the tax treatment is pretty punitive.

I really appreciate the reply


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