American Citizen, bought a new house in Canada using the HBP

MIKE2000Z28 · Post by **MIKE2000Z28** » Wed Feb 22, 2012 10:24 am

Alright my wife and I just bought a house this past December. The dreaded tax season is upon us and im not quite sure how exactly to report the home buyers plan. I know im taxed on interest the distribution made, but what are the details i need to know?

Any pointers? Montreal is lacking in cross border tax professionals.

MIKE2000Z28 · Post by **MIKE2000Z28** » Wed Feb 22, 2012 10:34 am

Also i emptied out all of my RRSPs for the HBP so my accounts don't exist anymore.

nelsona · Post by **nelsona** » Wed Feb 22, 2012 10:58 am

The withhdrawl of your RRSP is not in itself taxable in US, However using HBP "triggers" the reporting of any previously untaxed gains. You have no doubt been filing 8891 every year to defr taxation.

So, since you have been tracking the contributrions made to your RRSP, you simply report the gross and net taxable amount on 8891 of the HBP withdrawal, and this will feed 1040.

JGCA · Post by **JGCA** » Wed Feb 22, 2012 6:43 pm

I beg to differ that Montreal lacks qualified cross border specialists, Have you ever tried looking for one in Miami or LA, Montreal in fact has many since we are a border town only 1 hr away for the US border.

Also remember that in Canada you now have to obligation to pay back teh HBP annually in order to not pay tax on teh distributions so its not a done deal on teh CND side either, as Nelsona said you hoepfully were declaring the RRSP on form 8891 annually in the US or its going to be tax higher in the US.

MIKE2000Z28 · Post by **MIKE2000Z28** » Sat Feb 25, 2012 1:31 am

[quote="JGCA"]I beg to differ that Montreal lacks qualified cross border specialists, Have you ever tried looking for one in Miami or LA, Montreal in fact has many since we are a border town only 1 hr away for the US border.

Also remember that in Canada you now have to obligation to pay back teh HBP annually in order to not pay tax on teh distributions so its not a done deal on teh CND side either, as Nelsona said you hoepfully were declaring the RRSP on form 8891 annually in the US or its going to be tax higher in the US.[/quote]

I can find cross border lawyers for real estate, but as for taxes its a no go.

JGCA · Post by **JGCA** » Sat Feb 25, 2012 2:00 pm

Unlike the US where many clients use tax lawyers to even file their tax returns, this scenario does not exist in Canada. In Canada most people use Accountants to file their tax returns and tax lawyers to do corporate and personal tax planning and implementation of tax planning, the actual tax filings are done by accountants. For Cross border accounting in Montreal call RSM Chamberlin a medium sized CA firm that has an inhouse cross border dept which I work with they are very knowlegable.

JGCA · Post by **JGCA** » Sat Feb 25, 2012 2:09 pm

You also mention that its easy to find cross border Real Estate Lawyers, yet if you reside in Quebec as you know we follow the civil law regime and all our real estate is handle by Notaries not Lawyers unless your cross border dealings do not include any Quebec real property, so I do not see how you can have this experience.