how to report RRSP distribution with a net loss

[rashtijoon]

Hello

I had a RRSP account that the mutual fund company liquidated the fund and closed the account and distributed the amount.

I had a NET LOSS on that mutual fund. the distribution amount was around $300.

AS US citizen filing on my taxes, I have to report that distribution. I don't meet the threshold requirement of filing 8938.
Is 1040 the only form associated with this transaction that i should report the distribution under pensions and annuities amount? what will be the gross and taxable amount for this transaction as i had a net loss on this? how about schedule D for capital gain/loss report?

Regards,

[nelsona]

Thid is pension income, the gross is the total before Cdn taxes. The net will be zero. It cannot be negative.

The terminal loss can only be claimed on schedule A if you itemize.

RRSP income is not consodered capital income, so no schedule D for this.

[rashtijoon]

thank you for your reply.

you mentioned I must report the net amount as zero in 1040. what is the reason for it? is it because i had a loss on it?

also apparently mutual fund company didn't withheld any tax for CCRA. they sent me a check with no tax deducted. when i called them, they told me they treated this as a transfer to another RRSP i should/would do. they haven't issued any tax receipt for CCRA for this.

[nelsona]

Insist that they issue you a tax reciept. You didn't transfer the funds. Even if you did they would need to issue you a slip.

They are being lazy.

[nelsona]

Insist that they issue you a tax receipt. You didn't transfer the funds. Even if you did they would need to issue you a slip.
The net is zero, because you cannot have a negative pension income.
They are being lazy.

[rashtijoon]

thank you,

therefore my net is zero because i had actual net loss on it. is that right?

can i transfer the check to another RRSP account i still have in Canada, to treat this as RRSP transfer?

[nelsona]

I have explained how you declare a loss in this account -- it is not on the pension line, which cannot be negative. But if had done a transfer, then it would not be income at this time. BUT You would have had to do this before March 1.

An indirect transfer (what you are asking about) MUST have tax withheld, and at a minimum a tax slip MUST be issued. The firm did not make a direct transfer, so they should have issued a tax slip and withheld funds.
Talk to them.