Serbinski Accounting Firms

You mention above that the cost basis of an RRSP held by an individual that is not a US citizen or resident is the Book Value of the RRSP at the date that individual became a US resident. How is the Book Value of the RRSP calculated at that date if the assets of the RRSP are self-directed in mutual ...

Nelson - is the Cost Basis for a RRSP/RRIF the sum of the contributions and the investment earnings for each of the years up to the date of the US resident's relocation from Canada to the US? (All converted to US$ for each year)

As a U.S. resident filing U.S tax returns, should the calculation of the Cost of a Canadian RRSP/RRIF along with the basis for claiming the annual deduction of the Cost be filed with the IRS in the year that disbursements are first made from the RRSP/RRIF? If so, should this info be filed each subse...

Nelson - in the year that you convert an RRSP to a RRIF, so you have to file a FORM 8891 for the RRSP that has been converted to a RRIF before the end of the year and now has a nil balance as well as for the new RRIF that now contains the funds?

Yes - I did know that it was the greater of the 10%*MV or 2x the MIN AMOUNT to qualify as a periodic payment subject to Canadaian 15% witholding tax. Also in the above there is one other small mistatement I believe - the taxable amount of OAS and CPP in the US is 85% and not 80% - do you agree? I am...

Thanks Nelsona - your assistance has been very helpful.

I will do a pro-forma 2013 US tax return to see if I will be able to recover 100% of the Canadian tax witholdings through the US 1116 tax credit mechanism.

I will be very happy if I can! I will let you know the result.

Thanks again.

Thanks - a couple of follow-up questions 1. The LIRA was received from the company while I was still in Canada. Does it not have a cost basis just like the RRSP's? 2. The RRSP's do have a cost basis dating back to periods prior to our move to the U.S. so only a portion will be taxable in the US as y...

My wife and I are Canadian citizens and GC residents of the U.S. We have an RRSP and a LIRA in Canada that we converted to a RRIF and LIF during 2012 and plan to make periodic payents from the RRIF and LIF beginning in Jan 2013. The periodic payments will have NR tax of 15% withheld by Canada. We ha...