U.S. Cost (investment in contract) in a RRSP

[nelsona]

When it is part of an employer-sponsored RRSP. This has been the case for about 4 years now. Employer-sponsored RRSPs started after the new treaty date are now fully taxable upon withdrawal, since the contributions were not taxable.

[Stuart Macdonnell]

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 funds?

Is the Book Value equal to the Market Value at that date in this case?

Thanks

[nelsona]

The book value is the cost basis (sometimes noted in statements as the average price) of each holding at the date you become a US taxpayer, NOT the market value. This applies regardless of the type of investment one has.