RIF withdrawals, US taxability

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artistic95
Posts: 27
Joined: Wed Sep 26, 2012 12:27 pm
Location: Lake Wales, Florida,33859

RIF withdrawals, US taxability

Post by artistic95 »

I am retired and a US/CDN citizen living in US. I am withdrawing monthly from my RIF, some of which is non-taxable (return of investment) and a portion is taxable (gain on original investment), These contributions to RRSP /RIF were tax deductible when made and I was working in Canada but were not deducted on my US tax returns.
I no longer file Cdn Income Tax returns , but ,of course, file US Income tax returns and show the Gross amount of my withdrawals as pensions (line 4a) but reflect only the income portion of the withdrawal as taxable
(line 4b) . The taxable income portion is my best estimate.
Is there a reference to this reporting method, i.e. report income only on the distribution in the Cdn/US Tax Agreement or in the IRS Code I can refer to if I need for an attorney, i.e,divorce.
Thank you,
Artistic95
Thanks, Artistic95
nelsona
Posts: 18311
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Re: RIF withdrawals, US taxability

Post by nelsona »

The method of calculating the taxable portion of an RRSP/RRIF withdrawal has been described here countless times. Happy browsing.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing :D
artistic95
Posts: 27
Joined: Wed Sep 26, 2012 12:27 pm
Location: Lake Wales, Florida,33859

Re: RIF withdrawals, US taxability

Post by artistic95 »

Nelsona, I have read your responses and personally understand the tax treatment of deferring the taxability of RIF withdrawals because of your initial capital investment,i.e. not all RIF withdrawals are fully taxable..

However , is there a specific section in the US/CDN tax treaty that spells that out that I can refer to an attorney outsider to justify that position.

Appreciate your help on this matter, Thank you
Thanks, Artistic95
Bubba Gums
Posts: 54
Joined: Tue Jul 15, 2014 7:20 am

Re: RIF withdrawals, US taxability

Post by Bubba Gums »

Your non-taxable portion is considered an "Investment in Contract," IRC § 72(c)(1)(A). You should fill out the worksheet for each year of contribution, gain and withdrawal here, or create similar.

www.garygauvin.com/WebDocs/RRSP%20Inves ... ummary.pdf
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