Hi Nelsona, I know you have answered this question multiple time. But I'm getting hit with more tax to pay in the US.
I need to determine the taxable portion of the Gross RRSP withdrawal amount.
Non taxable RRSP (as of date I became US resident in September 2016) $50,433 USD
Gross withdrawal in 2019 (As of date of withdrawal) $49,408 USD (my stocks went down)
Net Taxable portion should be $0 or negative since I lost money (-$ 1,025) during 3 years.
Total Taxes paid to Canada for lump sum (25%) on Gross withdrawal $12,352 USD
On form 1116, The net foreign taxable income should be $0 or -$ 1,025 , not $49,408 USD right?
My accountant is adding the entire amount as an income and I get hit with more tax to pay since it raise my US income from last year to $171k.
Is it possible to declare a loss on form 1116?
Thank you
Another NR4 with code 43 into US tax question
Moderator: Mark T Serbinski CA CPA
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Re: Another NR4 with code 43 into US tax question
The taxable portion is ZERO. Once you close the RRSP, then you can claim a loss only on schedule A.
So, there is no point claiming tax this on 1116, Use it on Schedule A instead, hoping that along with you other itemized decutions, you will get something out of it.
Your accountant is incorrectly including the gross as net income. The gross ($49K) and net (0) go on the pension line of the tax return.
So, there is no point claiming tax this on 1116, Use it on Schedule A instead, hoping that along with you other itemized decutions, you will get something out of it.
Your accountant is incorrectly including the gross as net income. The gross ($49K) and net (0) go on the pension line of the tax return.
After 20 years, I am severely cutting back on responses. Do not ask specifically for my help. There are a few others on this board that can answer most questions. All the best
Re: Another NR4 with code 43 into US tax question
I'm assuming this is your personal RRSP, not some pension rollover.
After 20 years, I am severely cutting back on responses. Do not ask specifically for my help. There are a few others on this board that can answer most questions. All the best
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- Posts: 5
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- Location: Ottawa
Re: Another NR4 with code 43 into US tax question
Thank you, that was my assumption.
Well, it was a personal LIRA converted into an RRSP for withdrawal. Hope that doesn't change anything.
Do you have the link where you describe the rules for non-taxable vs taxable ratio?
Well, it was a personal LIRA converted into an RRSP for withdrawal. Hope that doesn't change anything.
Do you have the link where you describe the rules for non-taxable vs taxable ratio?
Re: Another NR4 with code 43 into US tax question
Since it was a LIRA, it is 100% taxable in US, so you can use the Cdn tax as a credit. Only personal RRSPs have some US tax-free portion.
IRS Code 72(w) I believe.
IRS Code 72(w) I believe.
After 20 years, I am severely cutting back on responses. Do not ask specifically for my help. There are a few others on this board that can answer most questions. All the best