I am a US resident and last year I closed my GIC locked-in retirement account, paid 25% tax on the distribution ($5000) to CRA and received NR4 form from CRA.
How is my situation different from regular RRSP distribution?
I plan to take tax deduction on Schedule A, but where do I claim the income from the distribution?
GIC RRSP distribution filing
Moderator: Mark T Serbinski CA CPA
It is no different.
Your RRSP had a value in USD on the day you became taxable in US. Figure out that value. That goes on 1040 line 16a
Your closure of the RRSP had a before-tax value in USD on the day you closed the account and extracted the funds. Figure that out. Report the difference between the this value and the 16al value values and report that amount on 16b (or zero if it is negative).
Then, like you say, since the taxable amount will be minimal, take the Cdn tax as a deduction.
Your RRSP had a value in USD on the day you became taxable in US. Figure out that value. That goes on 1040 line 16a
Your closure of the RRSP had a before-tax value in USD on the day you closed the account and extracted the funds. Figure that out. Report the difference between the this value and the 16al value values and report that amount on 16b (or zero if it is negative).
Then, like you say, since the taxable amount will be minimal, take the Cdn tax as a deduction.
After 20 years, I am severely cutting back on responses. Do not ask specifically for my help. There are a few others on this board that can answer most questions. All the best