Did I fill 8891 form correctly?

[fepmn]

I became a green card holder in 2012 and have been a US resident since August 2012. Since I own a RRSP in Canada, I will fill Form 8891 for the first time. I need help to make sure I filled it properly.

My RRSP yearly statement (rounding numbers) says something similar to :
- Market Value of your account on Dec 31, 2012 = $100,000 CAD
- 2012 tax year RSP contribution = $9,000 CAD
- Y-T-D Distributions of Interest, Dividends and/or Capital Gains : $2,000 CAD
- Distribution on the account are automatically re-invested

On Form 8891 :
6a. I checked "No"
6c. Should the checkbox be selected? I think yes but not 100% sure.
7a. $2,000
7b. $2,000
8. $100,000 ....
9. $9,000
If I am right in 6c to check the box, then 10a. b. c. d.and e. should be empty...

Does that seem right?

Also am I right to convert all CAD $ to US $ on the form using the exchange rate of dec 31, 2012 ?

Thanks a lot!

[Taxpoor]

Whether you filled out the 8891 correctly depends on whether or not you are electing to 'defer' or not.

[nelsona]

You should defer. And you should check benefficiary.

Once that os done, you stop at line 8. No further. and 7 should be 0. distributions on this form means withdrawals from RRSP, not internal dividends.

[fepmn]

Thanks. Yes I do want to defer.
To defer : is that basically checking box 6c ?

7a, 7b = 0 since I did not withdraw money.
8 = amount
9 = my contributions for 2012 (i.e. $9000)
the rest empty

is that it ?

[nelsona]

Did I not say "you stop at line 8. No further"?

Line 9 is after line 8. so you do not put anything on line 9.

[fepmn]

@nelsona: yes you did say. I guess I really wanted to put something at 9. It's fine I won't fill it ;)

[nelsona]

Remember, 8891 doesn't "track" your RRSP taxable/non-taxable income (which is why you would want to include any contribution).

The cost basis of your RRSP must be tracked by you.

[fepmn]

Does that mean I should find documentation to show the amount value my RRSP at the time I became a US resident ?

[nelsona]

Yes, the book value, not the fair market value.

[peters]

I filed 8891 form when I became resident of US in 2008. I did not file 8891 afterwards since I haven't contributed or distributed any amounts to/from the account. Later this year I would like to close the account, if I understand this correctly, this would trigger filing 8891 form due to distribution.

Regarding Canadian Side, Investment company withheld 26% to CRA since I file W-9 with them. Does that mean that I have to file Canadian tax return next year to get this money back? At the time I took RRSP loan, so I am not sure why would there be 26% tax since this was a loan.

[nelsona]

You were still required to file 8891 every year, regardless of whether you took anything out. I would be back-filing these immedaitely or face penalties for failure to file 3520, which 8892 substitutes for.

The 25% tax you paid is exactly what you owe. Why would you think you would get some back?

[peters]

To back file do I file amended returns for each year since 2008? The amount in the account is <$4000.

I am not sure, I thought that the payments for RRSP loan were not tax deductible, so there should be no withholding.

[peters]

[quote="peters"]To back file do I file amended returns for each year since 2008? The amount in the account is <$4000.

I am not sure, I thought that the payments for RRSP loan were not tax deductible, so there should be no withholding.[/quote]

And also there was a loss rather than gain on the account.

[nelsona]

It doesn't matter the ammount, you must report the RRSP every year. Its not the loan you are reporting its the RRSP itself.