No. For US tax purposes, these accounts are not recognized as tax free accounts. That means that any income earned within these accounts will be taxed when you file your US tax return. Furthermore, some TFSA and all RESP accounts are considered foreign trusts for US tax purposes. This causes additional tax reporting burden on the taxpayer who has to file Form 3520/3520-A each year. The cost of preparing these forms by a professional can range anywhere from $200 - $5,000.
Allan Madan, CPA
February 12, 2014
