# PFIC status of HISA at brokerages



## james4beach (Nov 15, 2012)

The US calls certain things PFICs and these require very special tax treatment (for US persons). Canadian mutual funds and ETFs are considered PFICs. Additionally, corporations/trusts that are PFICs often put out Annual Information Statements (e.g. see Blackrock).

My question is: *are HISAs at discount brokerages, like TDB8150 and DYN1300, considered PFICs in non-registered?* Or might the IRS confuse them for being PFICs? (This is just as dangerous).

HISAs are not actually mutual funds, but are traded using mutual fund codes. They are not 'money market mutual funds' either, but rather bank deposits. This Scotia page spells out that they are not mutual funds.

Any US persons out there -- do you hold HISAs non registered? Has the IRS ever given you trouble over them? Or any reason to believe they will be categorized as PFIC?

https://hodgen.com/is-my-investment-account-a-pfic/
https://www.taxesforexpats.com/expat-tax-advice/pfic.html


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## james4beach (Nov 15, 2012)

Just FYI, my cross border tax expert thinks it's OK to use the ISAs without worrying about PFIC implications.


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## no strings attached (Jun 4, 2013)

interested in this issue as well since I'm dual citizen (living in Canada, but I pay a lot to file both returns each year). I've been buying two high interest saving account ETFs, namely HISA.TO and HISU.U.TO. I also have regular savings accounts and GICs. Did you get any clarity on this?


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## no strings attached (Jun 4, 2013)

maybe this helps...
"If you need to hold some fixed income in your non-registered account to keep the portfolio in balance, you could use GICs or high-interest savings products, neither of which are considered PFICs, so they would not require additional reporting. "









Investing tips for dual citizens of Canada and the U.S.


TFSAs are best avoided, RRSPs can work for you, and other financial wisdom




www.moneysense.ca




.


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## AltaRed (Jun 8, 2009)

The transactional method of how to purchase and sell ISAs has nothing to do with the actual product which is the operable entity. There is no risk of ISAs being considered PFICs.


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## james4beach (Nov 15, 2012)

no strings attached said:


> interested in this issue as well since I'm dual citizen (living in Canada, but I pay a lot to file both returns each year). I've been buying two high interest saving account ETFs, namely HISA.TO and HISU.U.TO. I also have regular savings accounts and GICs. Did you get any clarity on this?


In all the years I was living in the US and was a taxpayer/US person, I did not have any issues with bank ISAs such as TDB8150 and DYN1300. Those are not PFICs. But I only used those "mutual fund" type of ISAs, which are actually deposit accounts -- they aren't funds.

I have no idea what HISA.TO is though, and can't find the ticker so I'm not able to check it out.


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