New 3.8% Obamacare Tax on investment income - Canadian tax

This is our main tax information forum which deals with topics concerning Canadians living and working in the U.S., U.S. citizens contemplating working in Canada, and all aspects of Canadian and U.S. income tax and related adminstrative issues.

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nelsona
Posts: 16139
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Post by nelsona » Sat Jul 05, 2014 9:43 am

No, since this tax would not be imposed on a Cdn resident who is not a US citizen, it is ineligible for FTC on your CDn return.

And by the way it is imposed on the 1040, there is no way to get the US FTC methods to eliminate or d=reduce it,

It does what it was supposed to do.
Nelsona Non grata. Non pro. Search previous posts. Happy Browsing :D

nelsona
Posts: 16139
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Post by nelsona » Sat Jul 05, 2014 9:44 am

It apples to income. Inasmuch as RRSP is not income until withdrawal, RRSP doesn't impact the tax.
Nelsona Non grata. Non pro. Search previous posts. Happy Browsing :D

MGeorge
Posts: 300
Joined: Fri Jun 22, 2012 9:23 am
Location: Canada

Post by MGeorge » Mon Jul 07, 2014 7:33 am

Hi tdiddy,

When you take out money from the RRSP that has been deferred using form 8891, this income will become part of the "Modified Adjusted Gross Income". This is one basis of the tax, but the RRSP income itself is a qualified IRA distribution, and isn't considered net investment income.

On future development, there is an article showing some treaty positions one could take:
http://www.aicpa.org/Publications/TaxAd ... l2014.aspx

As nelsona has stated, the forms do not lend themselves to a foreign tax credit.

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