Serbinski Accounting Firms

She should "register" her Rpth with CRA, if she didn't do it already when she moved to canada. https://www.canada.ca/en/revenue-agency/services/tax/technical-information/income-tax/income-tax-folios-index/series-5-international-residency/folio-3-cross-border-issues/income-tax-folio-s5-f3-c...

As I posted earlier, the spousal "half" is not affected by HER WEP. It will be essentially half of what you are getting at that time.

RRSPs are completely exempt from PFIC. It is the only type of account that has such exemption, by treaty. Your accountant handled your RRSP incorrectly.

There is little value in renunciation, so don't even think about that at her stage in life. Unfortunately, it is usually not as simple as "starting now" to file her 1040's; she likely would have to catch up before doing anything else. It is almost impossible for her to be taxable in US yea...

One difference in my case is that I'm applying early (62). It looks like you were incorrectly penalized by waiting.

Your experience is slightly different than mine. Worked with the Baltimore office. My WEP is reducing my SS by 35% (20 years of contributions, confirmed in writing to start in December) and it was confirmed that my spouse's "half" will be AFTER MY WEP (like you) but that her amount is not ...

Ok. RESPs and TFSA are NOT PFICs

The investments within them certainly can be PFICs

The word COULD covers what I said. And of course, it is the CONTENT of the RESP or TFSA that COULD be PFIC, not the account itself. >TFSA : Similarly if I invest my entire TFSA in US based non dividend stocks or Vanguard index funds, It would not be considered PFIC or foreign trust >right? Hence no ...

Just to add, With an RRSP, one has to tick yes on Schedule B.

Also, TFSA and RESP value and contents could make them subject to PFIC and FATCA reporting.

"My apology, I mean March 1st, 2024. Then, March 2nd, 2024, I have no gift tax issue as I live <180days in 2024. (non resident for tax purposes in 2024)." Again, you are missing the point. You MIGHT CHOOSE to be taxed as a resident for the entire year when you leave, so don't exceed the li...

Re-read what I said: I would wait until the next calendar year, just be safe. You might file full year taxes in US for the months you leave. Many who leave US choose to file their US taxes for that year using a full 1040, as it usually gives better tax rate that 1040NR. You might choose to do this, ...

Correct. Withdrawals should be considered blended withdrawals, prorating the non-taxable portion with the taxable, slowly reducing the non-taxable portion.

If she has combined her personal RRSP with the one from the LIRA. still only the book value on arrival in US of the personal portion would be tax-free in US.

Because it was a LIRA, it is 100% taxable in US (you cannot use the book value when entering US as a cost basis).

Since it is an RRSP, it can be converted to a RRIF at any time, and then qualify for periodic withdrawals at 15% Cdn tax rate.

4. Be aware that there are hefty deductibles and DAILY coinsurance for hospital stays.