Form 8854 Questions

w1040 · Post by **w1040** » Sun Sep 06, 2015 10:53 pm

I am preparing form 8854 for 2014 LTR expatriation. Part IV was easy, and I am not covered. When it comes to part V (the balance sheet), I am unsure of a few things:

For cash assets, how to determine the value for column (b), the U.S. adjusted basis? My cash assets are from earned income and proceeds from the sale of my home 3 years ago.

Which line should I use to include the value of my RRSP plan?

What "Other Assets" should be included? Cars? Household items?...

exPenn · Post by **exPenn** » Sun Sep 06, 2015 11:43 pm

How did you invest your cash assets? If you bought GIC's or bonds, the basis is the GIC principal or the face value of the bond, converted into US$ at the exchange rate prevailing at the time you bought them. For simple bank accounts, since interest is compounded monthly, the cost basis (b) and the Fair Market Value (a) are the same.

RRSP's should be reported on line 9: Assets held by Trusts. The cost basis should be the sum of your RRSP contributions, ideally converted into US$ at the prevailing exchange rate at the time you made each contribution.

"Other assets" indeed includes cars, furniture, etc. Column (a) would be the depreciated value, and column (b) the original cost, so column (c) will usually be negative.

exPenn · Post by **exPenn** » Mon Sep 07, 2015 12:28 am

Sorry, just noticed that you are an LTR. Assuming you held the RRSP before you became a US resident, its cost basis is the Book Value of the RRSP on the date you became a US resident plus any subsequent contributions.

w1040 · Post by **w1040** » Mon Sep 07, 2015 10:28 am

Thank you for your answers. What about Social Security type (ie Canada Pension Plan) benefits? Are they considered part of one's assets?

exPenn · Post by **exPenn** » Mon Sep 07, 2015 4:40 pm

No, because they have no net present value. However, if you have a company pension it should be reported on line 6 or 7. Note also that if you are not a covered individual, i.e. if the total of column a is less than $2M, it really doesn't matter what numbers you put in columns b and c. Of course, if you ARE a covered individual, you should definitely be getting professional advice before filling out this form.