Serbinski Accounting Firms

Nelsona

Thanks for correcting me on how to calculate my "gains".

BTW, I found this in Pub. 575. Is this enough justification for putting ONLY the "gains" from my RRSP redemptions on Line 7(b) of Form 8891 (and Line 16b of 1040)?! The notes for Form 8891, Line 7(b) says "see section 72 and Pub 939 ...

Nelsona

I talked to the IRS to find out how to determine what amount goes on Line 7b of the new Form 8891. The lady I spoke to told me that it was the FULL AMOUNT of my cashed-in RRSP?!! She mentioned "Section 72(w) of Rev-Proc 2002-23, amended in Oct 22nd, 2004". I just read through the Topic ...

What goes on Line 1 of Form 1116? The value on Line 16a of the 1040 ($100K) or the value on Line 16b (the TAXABLE income)? I only ask because the form itself is confusing - the header says "Taxable Income from sources outside the United States" but the blurb on Line 1 says "Gross income from sources ...

Wait a second here! I thought the point of all these discussions on Rev-Procs, Form 8891s etc. is that the IRS is only interested in taxing the GAINS since the first year you entered the US. What happened before that is not the business of the US. If this is correct, wouldn't it make more sense just ...

Instead of looking for historic Exchange Rates for the basis of every investment in your RRSP, wouldn't you just take the exchange rate in effect for the first year you entered the States? In this case, the first equation, with 2 different exchange rates, is still correct.

Thanks for the info Nelson. One more question - what category does the RRSP Redemption fall under on Form 1116? Is it "Lump-Sum Distribution" or "General Limitation Income"?

I have read numerous posts on this topic but still need some clarification. For example, suppose I cash in my RRSP's completely (worth $60,000 CDN). I have been filing the Rev Procs and all that good stuff. The RRSPs were worth $40,000 CDN when I entered the States in 1997. Canada takes $15,000 (25 ...