Handling COST basis for Multiple RRSP Accounts

[samos]

(Reposting as a new topic from another thread)
I have multiple RRSP Account which I collapsed recently. One of the accounts had increased in value over book value (since I Became US Resident) and the rest all dropped. When accounting for the taxable amount from all the accounts would that be the aggregate of (final value - book value) for all accounts combined or would the account that increased in value be counted separately (and ingnoring those accounts that decreased in value)

[nelsona]

answered elsewhere

[nelsona]

Remember to fasctor in the rise in the Cdn dollar over the time you have been in US. This typically turns losing accounts (in C$) into gainers in terms of US$.

Your book value when you arrived is in the US$ at that time. The salesvalue is in US$ when you sold.

[samos]

Thank you Nelsona.
Yes, I factored in the Exchange now (Time collapsed) and then (Time became US resident). However,
1- One of the accounts are in my wife's name (Spousal RRSP which I created and contributed to) and only that one made money, the rest all lost.
2 - One of the Account (LIRA) I did not collapse yet due it being locked, can I factor in its loss when computing the Net gain?

Also, If its not too much trouble please advise on whether a single 8891 form is needed (which only allows accounting for one RRSP account at a time). My question is where do combine multiple accounts?
Note that I file my US Taxes as Married filing jointly.

[nelsona]

Each account requires its own 8891, every year that they are in existence. this is clear from the 8891 form.

As I said, only collapses or withdrawals performed in the same year can be combined when you report the income on line 16a and 16b of 1040.

So you cannot factor any loss on accounts which have had no withdrawals, but can factor accounts belonging to either person of the couple, if filing jointly.

[samos]

Can you recommend an accountant that works by the ruiles you mention? I have seen so far some that either:
1 - Want to look only at contributions (rather than Book Value at time of crossing the corders) regardless of the fact that I contributed as a Canadian Resident and not a US person. That's almost impossible to track for me now.
2 - Or Want to treat the whole distribution amount as taxable
3 - Or Want to treat each of my collapsed accounts as either made gains (Taxable amount) or Nill
This is very frustrating ....

[nelsona]

You should be able to do this yourself.

[nelsona]

turbotax handles these situations very nicely.

[samos]

OK so lets take a simple example.
Starting with 2 Account each with 10000 bbok value, Accoutn 1 gaining 3000, Account 2 losing 3000:

Account: 1
Distribution Received: 7a) 13000
Taxable Distribution 7b) 3000

Account 2:
Distribution Received: 7a) 7000 (Account Lost 3000)
Taxable Distribution 7b) 0


If you carry the numbers from both accounts (adding the 7B lines), they will show a Net Taxable distriubution of 3000 as opposed 0 (since the loss and gain should balance out)
It would seem the process does not allow to balance losses with gains. Am I wrong here?

[nelsona]

For the second account 7b would be MINUS 3000.

The process allows for it. The software may be the issue here. File the 8891 manually if you must.

[nelsona]

Your other choice is to report the $3000 profit only now (especailly since you have cdn tax paid, and can use it as a credit) and save the loss until you have collapsed all RRSPS/RRIFs etc, and take a terminal loss on schedule A in that year.

Just as an added point, if you had gained 3000 on one acct and lost $4000 on the other, you would show 0 for 16b, and 'bank" the $1000 for future use, either aginst future gains from RRSPs or as a terminal loss described above.