Serbinski Accounting Firms

Thanks for the quick reply!

Regarding the three options you mentioned - it sounds like how much taxable vs. non-taxable you want to withdraw is basically just determined by changing the gross amount and taxable portion on the pension line then?
It sounds like it's basically up to oneself to keep ...

Hello!

I'm aware that as a US resident there is a 25% withholding on the Canada side. I am also aware that the cost basis should not be taxed in the US, but the gains would be taxed as income.

When I moved to the US I had roughly $69,000 invested in my RSP with a cost basis of $67,000.
At a later ...

Ahh, ok! Thanks for the clarification!

I'm confused about something. In other posts about non-residents receiving T5 statements I've seen the advice that one should mail CRA a cheque for 10%, and then use this value on form 1116 to get credit for it.

But in this thread it is said that non-residents don't pay tax on interest, and there ...

Thanks for the detailed reply! The example cleared everything up for me!

I have two questions about this.

1) If a person moves to California, does this mean if they had a book value of $100, then the first year they arrive they would have to pay tax on the $20? (120-100). What I'm imagining here is someone that doesn't step up the book value ending up having a really ...

I've seen many posts where users advise others NOT to file an NR73 unless they are specifically asked to by CRA.

I can't seem to find any posts that explain why this is. So, my question is, what is the reasoning behind this? Could someone explain what the drawbacks are of filing one?

thanks

[quote="nelsona"]It is something that doesn't make sense in the 8891, but it doesn't matter. They don't track your contributions or non-taxable portion: YOU do.[/quote]

If they don't track it, wouldn't it be easy for someone to use incorrect numbers that are to their advantage?

I'm guessing they ...

I was just thinking about something theoretically.

Let's say you made some kind of error.....for example, using the wrong exchange rate, or perhaps just a simple typo or miscalculation. If you don't pick up on it, what are the chances anyone else would? I think it would be very unlikely that IRS ...

"Even so, I'm sure, in the year you leave early, and are not making full salary, some 401(K) money could be moved to Roth -- your taxrate would be nowhere near 37% on say the first 100K. "

Oh yes - definitely a great idea there.

" There is no way that Cdn trax rtae will ever be loer that US rate is today. "

... unless perhaps you live in California? :)

My tax rate here is 37.3% ... in Canada I was in a lower tax bracket
(of course, my income increased quite a bit moving to California)

But the point is that if I move ...

Your tax bracket may be lower now, but I don't think that necessarily means it's better to pay tax now rather than defer it.

The majority of people are probably around the 25% tax bracket in the US. Let's say you were around 35% tax in Canada. It might be more worthwhile to wait 20 years and pay 35 ...

(5) I've read some posts about using "ameritrade" and "TD waterhouse". If you do a search for those terms you should come up with posts that deal with this question. If you find a good solution to this, I'd like to hear what you come up with.

(6) A couple things that I can think of to note:
- The ...

I would like to see if I understand taxation of RSP withdrawels correctly, specifically with regard to "book value vs market value".

Let's suppose that a Canadian resident maximizes the book value of their RSP account to a value of $50K when they move and become a resident of US. They work in the ...

Great! Thank you for clearning this up.