Is it allowed to withdraw say 10,000 each year from RRSP for a non-resident. It is OK to pay 25 % withholding tax and file Canada return at the end of year together with rental property loss.
This can result is low rate of tax after tax assessment.
RRSP Partial withdrawl each year
Moderator: Mark T Serbinski CA CPA
Your rental return (216 return) is filed without reporting any other income (as you have seen by looking at the return).
Your 25% rrsp tax is all there is to your RRSP withdrawl. You don't report it anywhere else on Cdn Cdn return, unless you are not working and file a 217 election.
Your 25% rrsp tax is all there is to your RRSP withdrawl. You don't report it anywhere else on Cdn Cdn return, unless you are not working and file a 217 election.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing 
Nelsona,
I apologize because I am weak in Finance. I did not understand your reply instead I am more confused.
For 2009, I am filing departure return. I got Quicktax CD but am holding off till 1040 is filed. I am also paying gross 25 % of rental income every month before 15 th of every month. My questions are
a) Do I need file 216 for rental as well as regular T1 return or just a single T1 return as departure return.
b) Cannot rental loss be RRSP income to reduce tax rate.
c) If 216 is only for rental and if every year there is loss and no profit, what happens to the accumulated loss and where can it be used?
Please advise.
I apologize because I am weak in Finance. I did not understand your reply instead I am more confused.
For 2009, I am filing departure return. I got Quicktax CD but am holding off till 1040 is filed. I am also paying gross 25 % of rental income every month before 15 th of every month. My questions are
a) Do I need file 216 for rental as well as regular T1 return or just a single T1 return as departure return.
b) Cannot rental loss be RRSP income to reduce tax rate.
c) If 216 is only for rental and if every year there is loss and no profit, what happens to the accumulated loss and where can it be used?
Please advise.
Your departure return only handles income from BEFORE your move, so
a)you need a 216 return for the second half of the year.
b) not on your 216 return.
c) it can't until you make a profit. You need to raise your rent. This is a business.
a)you need a 216 return for the second half of the year.
b) not on your 216 return.
c) it can't until you make a profit. You need to raise your rent. This is a business.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing
Hello Nelsona,
Lot of new information from your replies. Please correct me in my interpretations as these are applicable to me.
a) For 2009, I will file departure return. It will include all income including rental income till the cut off date. I get tax credit for taxes paid to US by formulae from your previous posts.
b) From the non resident date till year end, I report only rental income for that period on 216 return
c) For 2009, my prior year carry over rental loss is shown on departure return and not on 216 return. Also I split rental expenses while resident or non resident on corresponding return.
d) From 2010 and beyond, I file only 216 return which will give refund most of 25 % gross rent paid.
e) There is no way to save to lower tax rate from 25 % tax on RRSP whether small or large withdrawls. However, if I am in higher tax bracket this year, I can still buy RRSP upto allowed limit and cash them next year and still save money due to current tax rate higher than 25 % withholding.
Lot of new information from your replies. Please correct me in my interpretations as these are applicable to me.
a) For 2009, I will file departure return. It will include all income including rental income till the cut off date. I get tax credit for taxes paid to US by formulae from your previous posts.
b) From the non resident date till year end, I report only rental income for that period on 216 return
c) For 2009, my prior year carry over rental loss is shown on departure return and not on 216 return. Also I split rental expenses while resident or non resident on corresponding return.
d) From 2010 and beyond, I file only 216 return which will give refund most of 25 % gross rent paid.
e) There is no way to save to lower tax rate from 25 % tax on RRSP whether small or large withdrawls. However, if I am in higher tax bracket this year, I can still buy RRSP upto allowed limit and cash them next year and still save money due to current tax rate higher than 25 % withholding.
Nelsona- Correct. I had to convince my bank that I need RRSP for partial year while resident to buy me RRSP. Bank informed me that RSP loan cannot be given to non residents but can allow buying of RRSP from your own money.
Due to low exchange rate now, I am thinking whether it is worthwhile to buy C$ by selling US$ to buy RRSP and then withdraw all money in April and pay 25 % tax on that again.
Due to low exchange rate now, I am thinking whether it is worthwhile to buy C$ by selling US$ to buy RRSP and then withdraw all money in April and pay 25 % tax on that again.
Hello Nelsona,
When I input my data for rental income & expenses for only part year till I was resident (Balance being on 216), Canada tax calculation software gives me error saying that
"The data entered for your business results in a fiscal period of less than 365 days"
Anybody knows how to go about it?
When I input my data for rental income & expenses for only part year till I was resident (Balance being on 216), Canada tax calculation software gives me error saying that
"The data entered for your business results in a fiscal period of less than 365 days"
Anybody knows how to go about it?