Form T1142 - how to report an annuity?

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Mswalleye2
Posts: 32
Joined: Fri Oct 12, 2018 2:37 pm

Form T1142 - how to report an annuity?

Post by Mswalleye2 » Sat Jan 19, 2019 3:10 pm

Husband inherited lump sum $ in 2016 and also 1/2 of his mothers non qualified annuity in the same year. This was a USA estate handled by his sister in the USA. I did not file Form T1142 because I was unaware of it. He had the option of leaving the money where it was for up to 5 years, he is able to withdraw whenever. AIG states that the contract remains in the name of the deceased, the beneficiary does not become the owner of the contract.

Anyhow, seeing that I failed to fill in T1142 I want to submit a VDP (voluntary disclosre) application. My husband took money out in 2016 and 2017 just to reduce tax hit overall. I claimed the full amount in the USA as it was fully taxable but in Canada I claimed only the yearly interest accrued since he gained access to it.I am now stuck ...

When I file the VDP, do I also submit a completed T1142 with it?

When I report the $$ amount, do I report what the annuity was worth once he gained access, or am I just reporting the $$ taken out ... since it is not really his contract? and then I complete a T1142 each time he takes money from it?

I don't think there would be any money owing as I reported the interest generated.

feedback appreciated

Mswalleye2
Posts: 32
Joined: Fri Oct 12, 2018 2:37 pm

Re: Form T1142 - how to report an annuity?

Post by Mswalleye2 » Thu Jan 24, 2019 3:30 am

Disregard the above, .. no T1142 required. I see no option to delete or edit. I was told, by someone who should be up on it .. that I was not reporting the distributions from the annuity right ... so ... I want to be sure ...

When a beneficiary takes a distribution from this death benefit (USA) ... how much and how is it to be reported in Canada?

tks

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