Yes..thanks much again. I have copies of all statements as of Jan 01, 2005, the year in which I became U.S resident. I will mail the 1040X and 8891 and have my fingers crossed. Looking at the posts where everyone has successfully back filed 8891, I feel encouraged. Then I read HarveyC post saying his 1040X was rejected and I get very concerned.
Thanks again.
8891 Form
Moderator: Mark T Serbinski CA CPA
Remember that the VALUE on Jan 01 2005, is not quite the BOOK value of your holdings on that date.
The book value is the price at which you BOUGHT the investment, not its value on any particular day afterwards.
that is why I said you must work on determining your book value (it is soetimes seen as average cost of some mutual fund statements). it is not teh same as the value on the statement date.
The book value is the price at which you BOUGHT the investment, not its value on any particular day afterwards.
that is why I said you must work on determining your book value (it is soetimes seen as average cost of some mutual fund statements). it is not teh same as the value on the statement date.
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
Correct. Once you have this figure for your RRSP, that amount will be tax-free (for US purposes) when you start taking money out.
Just so we are clear:
You bought 1 share of XYZ in June 3rd 2004 at $5, it had a $1 reinvested distribution in December 18 2004, and was worth $24 on january 1st 2005. Your book value is $6. That is why one should always move their investments around within thier RRSP before moving to US. In the above example, swaping XYZ for ABC on Decemeber 31, 2004 would have incresed the book value of that account to $24, thus shielding $18 more from IRS.
In above case, remebrr too, that the book value is to be determined in US dollars on the date(s) the cost was incurred. So you would need to know the US exchange in june 3rd 2004 and on the december 18 2004 distribution date to come up with the exact book value in USD.
Your cash and GICs book value should be identical to its market value, since these are essentially cash.
Just so we are clear:
You bought 1 share of XYZ in June 3rd 2004 at $5, it had a $1 reinvested distribution in December 18 2004, and was worth $24 on january 1st 2005. Your book value is $6. That is why one should always move their investments around within thier RRSP before moving to US. In the above example, swaping XYZ for ABC on Decemeber 31, 2004 would have incresed the book value of that account to $24, thus shielding $18 more from IRS.
In above case, remebrr too, that the book value is to be determined in US dollars on the date(s) the cost was incurred. So you would need to know the US exchange in june 3rd 2004 and on the december 18 2004 distribution date to come up with the exact book value in USD.
Your cash and GICs book value should be identical to its market value, since these are essentially cash.
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