RRSP Tax implications for US residents

nelsona · Post by **nelsona** » Tue Oct 12, 2010 6:11 am

For instance, 1116 will likely only get you $200 of credit towrds the $1500 you pay IRS.

Using schedule A for such a large amount will probably trigger AMT, but will be best in the lng run, unless you know you wil have Cdn income in the near future.

skoper · Post by **skoper** » Mon Dec 13, 2010 8:48 am

A follow-up quesiton to this: is the only difference when doing this for non-registered investments that the capital gains/loss cannot be deferred with the IRS? The cost basis for non-registered investments is also book value?

nelsona · Post by **nelsona** » Mon Dec 13, 2010 8:51 am

No, the cost basis for non-sheltered investments is generally the deemed disposition value you reported on your departure return.

skoper · Post by **skoper** » Mon Dec 13, 2010 9:28 am

I'm hanging onto your use of the word "generally". Is there anytime where this is not the case, and book value can be used? Reason I ask is that I have significant unrealized capital losses in my non-registered investments. I departed Oct 2009 but have not yet filed a departure tax return with the CRA (I am not too concerned - I had no income in Canada in '09 and significant tuition tax credits to use; the value of my deemed properties was less than 25k).

nelsona · Post by **nelsona** » Mon Dec 13, 2010 10:09 am

I say generally, because it is always an option. However if your deemed disposition report (and you should get busy on this as you are required to report deemed dispositions in timely manner), you will have to use actual cost basis (book value).

As the rev proc that expained the IRS process mentions, you cannot pick and choose whetgher you use actual cost basis or deemed basis for individual investemnts.

This is really not the subject of this thread, so pots any elaboartion aleswhere, please.