There is no 180-day grace period to sell your {term:tfsa} tax-free. However, moving your funds to an unregistered Canadian account does eliminate the most complex US trust reporting requirements, though standard foreign account reporting will still apply.

The 180-day myth and TFSA taxes

There is no 180-day grace period after arriving in the US to sell your TFSA tax-free. The US does not recognize the tax-free status of a TFSA. Because of this, you will owe US tax on any gains realized upon sale.

You are considered a United States resident for tax purposes if you meet the {term:spt}. To meet this test, you must be physically present in the US on at least 31 days during the current year, and 183 days during the 3-year period that includes the current year and the two years immediately before that.

As a US tax resident, you must report all investment income generated within your TFSA on your annual US tax return.

Ongoing reporting for unregistered accounts

Even after moving to an unregistered account, you cannot avoid all reporting. You must still file an {term:fbar} if the aggregate value of all your foreign accounts exceeds $10,000 at any time during the year.

You may also need to file Form 8938 under {term:fatca} if your foreign financial assets exceed certain thresholds.