I have a situation where a US citizen who received significant income in 2012 due to spousal rollover from her deceased Canadian spouse. On the Canadian return, she was able to get a deduction for RRSP for the same amount of income reported from RRIF from the deceased spouse. what is the implication on her tax return since RRSP is not considered a deduction for US tax purposes.
Is there any treaty based laws which exclude all income from deceased Canadian spouse.
Your kind response is appreciated. thank you
Spousal rollover in 2012 to US citizen
Moderator: Mark T Serbinski CA CPA
Lets be clear. If the spouse recieved the entire RRSP and put in their their own RRSP or RRIF, then there is NO income for the spouse. It is not a case of recieving income and then purchasing an RRSP with that income.
Thus the pension article of treaty applies, where the US cannot include in income any pension ammount that was not included in income in Canada.
Thus the pension article of treaty applies, where the US cannot include in income any pension ammount that was not included in income in Canada.
After 20 years, I am severely cutting back on responses. Do not ask specifically for my help. There are a few others on this board that can answer most questions. All the best
Just remeber that there is no more "cost basis" for that RRSP. She will report the entire ammount of any withdrawals of those funds.
After 20 years, I am severely cutting back on responses. Do not ask specifically for my help. There are a few others on this board that can answer most questions. All the best