8898 maximum value questions

sitonatree · Post by **sitonatree** » Fri Apr 11, 2014 3:25 pm

Have the following questions for 8898 and was wondering if somebody can help me out.

1. Im reporting TFSA, RRSP on form 3520,8891. When determining if I satisfy the threshold for 8898, should I also take into consideration the values in these accounts or exclude them in the calculation?

2. I transferred money between different accounts during the year. When calculating the maximum value of all accounts (line 2 of Part I)), is it the total of the maximum value of each account or the total of the value of all the accounts at a time this total value is the greatest?
e.g. I had checking account of $5000 and saving account of $3000. On May 1 I transferred $1000 from checking to saving on Jun 1. The maximum value for each account during the year would be $5000 and $4000. I actually only have $8000 maximum during the year, but due to the transfer, the maximum of all accounts could be 5000+4000=9000. Should the correct # here be $8000 or $9000?

Thanks!

nelsona · Post by **nelsona** » Fri Apr 11, 2014 3:55 pm

1. While your 8891 covers the reporting aspect of RRSPs etc, their value still must be taken into consideration in determining the form thresshold.

2. Its the maximum value of each account. Does it really matter?

sitonatree · Post by **sitonatree** » Fri Apr 11, 2014 11:32 pm

Thanks Nelsona.

I transferred money between different accounts very often. Adding up the maximum values of all the accounts (when the maximum values are often on different dates for these accounts) just double or even triple the real total value of all accounts. just makes me look more "'wealthy" than I really am. And my reported interest income seems "small" compared with a large "'maximum values of all the accounts".