RRSP cost base withdrawal

[maminej]

Hello,

In 2016, we made a withdrawal from our RRSP for an amount less than 10000 USD ( and closed the account ). we automatically paid 25% tax to CRA.
This was a fresh RRSP account we opened a year before moving to the US, so there was no interests paid or any gains. I basically just withdrew the cost base.
My understanding so far is that we won't need to pay any US tax on the cost base RRSP.
My question is, what form should I use to report this 7xxx$ income in my Us tax return.

Thanks in advance

[nelsona]

It goes on the 1040 pension line 16a/16b

16a would be the gross C$10K amount before tax converted in USD on the day you collapsed.
The net would be the difference between 16a and the value in USD when became taxable in US (THAT is the cost basis). It will not be zero, If it is positive, report the difference on 16b as taxable. If it is negative it is a terminal loss, it is likely lost.

The 25% Cdn tax can be used on schedule A as a deduction, or reported on form 1116 and carried forward for future Cdn income. It is unlikely that you will use it in future, so take the deduction.

[maminej]

Thanks for the clarifications.
Based on your explanation, i should file as follows:
16a. 9200. USD (that's 13000cad that I put in my rrsp prior to moving)
16b. -50$ USD ( about 75cad service fee my bank charged me when I withdrew + there was no interest paid or groth on the account)

Is that correct ?

[nelsona]

No
You must value the rrsp on the day you became taxable in us -- in US dollars that day
You must then take the proceeds from the rrsp on the day you took it (before tax) -- in USD on that day. You need to look up the exchange rates for both times
If the value is negative 16b is zero. If it positive put that on 16b

[maminej]

Got it.

Thanks a lot for you help.
I think this will be very helpful for several people in my situation.