Transfer to RRSP Taxable event in the U.S.?

This is our main tax information forum which deals with topics concerning Canadians living and working in the U.S., U.S. citizens contemplating working in Canada, and all aspects of Canadian and U.S. income tax and related adminstrative issues.

Moderator: Mark T Serbinski CA CPA

Post Reply
Posts: 4
Joined: Wed Apr 08, 2020 7:36 pm

Transfer to RRSP Taxable event in the U.S.?

Post by clank » Sun Apr 19, 2020 6:01 pm


I tried searching for this question but wasn't able to find an answer. I became a US resident in May of 2019. I want to file as a full year resident (viewtopic.php?f=2&t=219748&p=260967#p260967 - more info here. Question is in February 2019, I transferred stocks from my margin account to my rrsp as an in kind transfer. Is that a taxable event from the US? If so, would it be treated as essentially selling the stock and buying the stock in the RRSP and long term capital gains, etc would apply? If that's the case I'm guessing in this case, I could get back some of the tax credits I paid in Canada?


Posts: 16416
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Re: Transfer to RRSP Taxable event in the U.S.?

Post by nelsona » Mon Apr 20, 2020 8:09 am

In both Canada and US this is a transaction. Gains (but not losses) arising from that transaction would be taxable in both countries (if you file full year 1040).
Nelsona Non grata. Non pro. Search previous posts. Happy Browsing :D

Posts: 2
Joined: Wed May 13, 2020 6:47 pm

Re: Transfer to RRSP Taxable event in the U.S.?

Post by ZippyUSA » Wed May 13, 2020 7:20 pm

I'm no expert, but you definitely need to take a capital gain or loss in Canada since your transaction was before you became a PR of US. You'll file a return in Canada to close out your account? The stock disposal value is it's price when you swapped it into the RRSP and the cap gain is the price difference from when you bought it minus any return of capital adjustments etc.
If you still have a margin/cash account in Canada, you may find it difficult to make any transactions as US residents can't buy and sell stocks in Canada except in RRSPs thru the broker.
Likely the tax you pay in Canada can be used as a tax credit in your US filing. I do that with Canadian rental income while being a US resident.
I've found the Canadian taxes are so high that you almost never pay more in the US on the same transaction. You shouldn't be double taxed on this.

Post Reply