I know this question has been answered before but I want to double check with my exact situation:
I'm a <b>US citizen</b>, and I moved permanently <b>from Canada about 4 years ago</b>. I still have about <b>$40,000 in RRSPs </b> (original contributions were $47,000 so there was some loss...).
I don't have any other Canadian sourced income (maybe $200 in interest), and I make decent money here in the US. I want to liquidate my RRSP, and I want confirmation of the following:
Is it true that I basically have to accept the 25% withholding because I have <b>no other Canadian sourced income</b> to claim it as a deduction against, nor can I claim the Section 217 because I have over $100,000 of US income? If so, I assume that I can withdraw it all at once?
Thanks,
Troy
RRSP Withdrawl for US Resident
Moderator: Mark T Serbinski CA CPA
Since your RRSP deductions were never deductible in US, and you have less than you contributed (according to your post), you have no tax liability in US. line 16b= 0.
Your Cdn tax willbe 25% flat tax on every dollar you withdraw, and it is unlikely that a 217 election would benefit you, but you are quite free to d othe calculation for your own satisaction next spring.
You are also quite free, despite having no tax liability in US, yo uyse the 25% tax as a deduction (it does you no good as a credit) on Schedule A.
You can even claim the loss (47,000 - 40,000) as a tax deduction ao schedule A, much like one who collapses thier Roth with an overall loss.
In calculating you Contributions and payouts etc, do be sure to use the exchange rates that were in place in the tears you made your contributions, and your withdrawal. You may be surprised to find that a $7000 Cdn shortfall turns into a profit in US$ terms.
<i>nelsona non grata... and non pro</i>
Your Cdn tax willbe 25% flat tax on every dollar you withdraw, and it is unlikely that a 217 election would benefit you, but you are quite free to d othe calculation for your own satisaction next spring.
You are also quite free, despite having no tax liability in US, yo uyse the 25% tax as a deduction (it does you no good as a credit) on Schedule A.
You can even claim the loss (47,000 - 40,000) as a tax deduction ao schedule A, much like one who collapses thier Roth with an overall loss.
In calculating you Contributions and payouts etc, do be sure to use the exchange rates that were in place in the tears you made your contributions, and your withdrawal. You may be surprised to find that a $7000 Cdn shortfall turns into a profit in US$ terms.
<i>nelsona non grata... and non pro</i>