Using Capital Losses vs Tuition Carry Forward amount to offset departure tax

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mm77mm77
Posts: 20
Joined: Fri May 15, 2020 11:42 am

Using Capital Losses vs Tuition Carry Forward amount to offset departure tax

Post by mm77mm77 »

I have both unused capital losses and tuition credit amounts from previous years.

1. Is it better to use one vs the other to offset the departure tax due to deemed disposition? Or it doesn't matter?
I have enough of either to bring my departure tax to zero (if I limit capital loss applied to current year to 0, the software takes the unused tuition credits instead).
2. As a non-resident would I be able to use any of these carry forward amounts in the future to offset withholding taxes on my RRSP withdrawals, OAS, CPP payments or anything else?
Thank you!
nelsona
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Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Re: Using Capital Losses vs Tuition Carry Forward amount to offset departure tax

Post by nelsona »

It probably doesn't matter. You are unlikely to have future gains in canada unless you own property, so you might use cap gains first. Assume that you will never use what's left of either.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing :D
mm77mm77
Posts: 20
Joined: Fri May 15, 2020 11:42 am

Re: Using Capital Losses vs Tuition Carry Forward amount to offset departure tax

Post by mm77mm77 »

Thank you.
Just to clarify, let's assume I have zero other income in 2020 and close my RRSP and have withholding tax of $5K.
Can I choose to file 2020 Canadian non-resident tax return and use my unused capital losses/tuition to reduce (or get a refund) on my withholding RRSP tax?
Maybe section 217?
nelsona
Posts: 18359
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Re: Using Capital Losses vs Tuition Carry Forward amount to offset departure tax

Post by nelsona »

yes a 217 return would be possible, but that doesn't change the answer to your question.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing :D
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