u/BowenWanderer

I’m a U.S./Canadian dual citizen living in Canada and file tax returns in both countries every year.

I currently hold about C$300k of a U.S.-listed stock in my TFSA. I also have an FHSA, RRSP, and non-registered account.

I’ve never sold any shares in the TFSA, so I haven’t realized any capital gains inside the account. I recently started writing covered calls on my non-registered position, but want to understand the tax implications if I did the same in my TFSA, once per monthly.

My questions are:

How are covered call premiums inside a TFSA treated for U.S. tax purposes?

If a covered call is assigned and shares are sold inside the TFSA, how is that treated on the U.S. side?

Are there any issues with writing covered calls in a TFSA as a U.S. citizen that I should be aware of?

Has anyone here who is a U.S./Canadian dual citizen dealt with this firsthand?

I’m planning to speak with a cross-border tax accountant, but I’d appreciate hearing from anyone with practical experience before I do.

Thanks!

I’m a U.S./Canadian dual citizen living in Canada and file tax returns in both countries every year.

I currently hold about C$300k of a U.S.-listed stock in my TFSA. I also have an FHSA, RRSP, and non-registered account.

I’ve never sold any shares in the TFSA, so I haven’t realized any capital gains inside the account. I recently started writing covered calls in my non-registered account and am trying to understand the cross-border tax implications if I were to in TFSA.

My questions are:
How are covered call premiums inside a TFSA treated for U.S. tax purposes?

If a covered call is assigned and shares are sold inside the TFSA, how is that treated on the U.S. side?

Are there any issues with writing covered calls in a TFSA as a U.S. citizen that I should be aware of?

Has anyone here who is a U.S./Canadian dual citizen dealt with this firsthand?

I’m planning to speak with a cross-border tax accountant, but I’d appreciate hearing from anyone with practical experience before I do.

Thanks!

Hey everyone,

Long-time holder here. I am sitting on 31,000 shares of SOFI with an $9.00 average cost basis.
Like most of you, it has been brutal watching us slide 50% from the late-2025 highs. Now that the stock is carving out a flat, sideways base around the $15–$18 range, I am tired of leaving passive income on the table.

I want to start writing out-of-the-money monthly covered calls (30-45 DTE) at a safe $22.00 or $25.00 strike price to collect yield while we grind sideways. Given my low entry point, I am debating between two distinct approaches:

Option 1 (The 50% Hedge): Leave 15,500 shares untouched to capture 100% of an explosive "God Candle" earnings breakout. Write calls on the other 15,500 shares to monetize the flatline.

Option 2 (The Full Fleet): Write calls on all 31,000 shares. Trust that the $22-$25 strike wall is high enough to avoid getting my shares called away, maximizing my monthly premium income.

Got estimate in Feb for $19800 and my confirmed amount today is $17400.

Don’t comment saying “this was only an estimate”, why is it off this much and has anyone else had this….