Hi all,
I am a dual citizen who moved from Canada to the US a long time ago who kept my RRSPs and has elected to defer taxes on accrued income as per the US/Canada tax treaty.
One of my RRSPs has holdings in Brookfield Infrastructure Partners for many years now.
For the first time, I have received a Schedule K-1 (Form 1065) from them that details the activity and income for 2023.
I was under the assumption that any income earned in my RRSP was not subject to US taxation until I decided to receive a distribution from my RRSP.
Is this not true? Will I need to declare this income on my US tax filing?
Thanks in advance for any help.
US Resident: Schedule K-1 Form 1065 income in an RRSP
Moderator: Mark T Serbinski CA CPA
Re: US Resident: Schedule K-1 Form 1065 income in an RRSP
the income continues to beexempt from US and Cdn taxes. Ask your broker why the change in reporting.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing 
Re: US Resident: Schedule K-1 Form 1065 income in an RRSP
Thanks for the feedback nelsona, that was my thought as well from my understanding of the tax treaty as it applies to RRSPs for US residents.
I called Brookfield to see if they knew, but they didn't really know. They assumed that my only transactions with BIP was in 2023, but I have records of transactions back to 2018.
On the cover letter from Brookfield they state:
"We are generally required to send all unitholders a U.S. tax package. Non-U.S. resident unitholders may not require the tax package"
Have also inquired with RBC Dominion Securities who administer the RRSP. Still awaiting a response.
I called Brookfield to see if they knew, but they didn't really know. They assumed that my only transactions with BIP was in 2023, but I have records of transactions back to 2018.
On the cover letter from Brookfield they state:
"We are generally required to send all unitholders a U.S. tax package. Non-U.S. resident unitholders may not require the tax package"
Have also inquired with RBC Dominion Securities who administer the RRSP. Still awaiting a response.
Re: US Resident: Schedule K-1 Form 1065 income in an RRSP
Contacted RBC Dominion and they don't know why there was a change in reporting.
As noted Brookfield also doesn't know. Their assumption was that I was holding Brookfield only in 2023, which was not the case.
My assumption is that Brookfield is now being more diligent in their reporting.
Perhaps in the past they didn't report to owners of shares held in an RRSP.
But as you noted, it continues to be exempt.
Many thanks for the information.
As noted Brookfield also doesn't know. Their assumption was that I was holding Brookfield only in 2023, which was not the case.
My assumption is that Brookfield is now being more diligent in their reporting.
Perhaps in the past they didn't report to owners of shares held in an RRSP.
But as you noted, it continues to be exempt.
Many thanks for the information.
Re: US Resident: Schedule K-1 Form 1065 income in an RRSP
Hi,
I'm a Canadian Resident who received and Schedule K-1 (Form 1065) due to buying and selling UNG in my RRSP in 2023.
I lost money, but am I still required to file anything?
November 22nd I bought 500 shares of UNG at $5.99/unit.
November 29th I sold all 500 shares of UNG at $5.60/unit.
I don't know what to do with the Schedule K-1 (Form 1065), or if I am required to complete a Form 1040-NR (U.S. Nonresident Alien Income Tax Return).
Is is true that RRSP shares are exempt from reporting requirements and I don't have to do anything with the Schedule K-1?
Any advise would be greatly appreciated!
Thank you
I'm a Canadian Resident who received and Schedule K-1 (Form 1065) due to buying and selling UNG in my RRSP in 2023.
I lost money, but am I still required to file anything?
November 22nd I bought 500 shares of UNG at $5.99/unit.
November 29th I sold all 500 shares of UNG at $5.60/unit.
I don't know what to do with the Schedule K-1 (Form 1065), or if I am required to complete a Form 1040-NR (U.S. Nonresident Alien Income Tax Return).
Is is true that RRSP shares are exempt from reporting requirements and I don't have to do anything with the Schedule K-1?
Any advise would be greatly appreciated!
Thank you
Re: US Resident: Schedule K-1 Form 1065 income in an RRSP
I spoke with a RBC representative today who told me that I don't have to worry about doing anything with the K-1 that was sent by the ETF issuer.
If I get a failure to file penalty from the IRS (or more relevant information) I will update.
If I get a failure to file penalty from the IRS (or more relevant information) I will update.