Serbinski Accounting Firms

Thanks a lot, Nelson... got it!

I'm a little confused. Bequeathing the RRSP to my spouse gives rise to NO income in Canada and thus none in the US I understand. I also understand about cost basis.

She is a US citizen and so am I (dual w/ Canada) so am I my estate would be tax free to her because it would be under the max. limit ...

I'm looking at estate planning right now (due to illness) and am unsure of how my RRSP would be treated for my wife should I pass away before her. She is a U.S. citizen and has never lived in Canada. She is the beneficiary listed with TD Waterhouse (and in the will). Upon my death, what happens ...

[quote="nelsona"]DB, whether you wait or not, remember to use the accrual method when filling your 1116 for this.[/quote]
Yup... thanks. That way worked out best, but we ran the numbers both ways to see if a sched-a (no AMT) was better using only the 2007 payment amt.

"One typically..." is assuming unstated things.

We are talking about adding one's name to a title, not a deed. A land title indicates ownership of the land -- any house on it just happens to add an improvement value to the land's legal plat description on the title. A land title in no way ...

Not if I paid for 1/2 of it, there isn't.

Also, notice the the OP said "our house" and not "his house."

I know it's a federal issue. Putting another name on a title (due to marriage) is [b]not[/b] a gift.

No -- mine was a case where the bank did not withhold the proper amount for a collapsed RSP last year. They withheld 10% instead of 25%. I realize I should owe them 15% more, but based on what you wrote, I think it's easier for them to ask for it than for me to send it to them "out of the blue ...

At least in Texas, there are no issues whatsoever with this. There is no "gift tax" involved in adding a spouse to a legal property title. I did it myself 3 years ago. I would advise using a lawyer, however.

Now I think I'll wait... 8)

That's an excellent idea!

Will do.

Cheers!

Thanks.

In our case, using the 25% as a credit is the best way to go, so I don't need to worry about that.

Getting through to CRA now as to what to do is the issue -- their International 800 number rings busy all the time!

Nelson... I'm back. ;-)

Is a T4RSP the form that would typically be sent to a U.S. resident for the LIRA collapse I did, because that's what I just received. It reflects the total collapsed amount and the (only) 10% they withheld. I'm about to fill out my 8891 and get the return to our accountant ...

LOL :wink:

I was merely making an aside that I'm reinvesting the money here... it meant nothing more.


In post #2 you said 25% (which is what I previously thought it was). For all I know, CCRA is right at 10%, so I'm just waiting it out, now. They know where to find me.