reporting RRSP/RRIF distributions to IRS

nelsona · Post by **nelsona** » Mon Apr 25, 2016 11:52 am

A 217 election is PART of either a departure return or a non-resident return, failed during tax season.

eortlund · Post by **eortlund** » Mon Apr 25, 2016 11:58 am

Got it, I think. So second 217 return is part of non-resident return filed in 2018 for 2017 tax year.

nelsona · Post by **nelsona** » Mon Apr 25, 2016 12:03 pm

sure. It would be the only reason to file a 2017 return.

eortlund · Post by **eortlund** » Mon Apr 25, 2016 12:08 pm

Thanks!

If house doesn't sell and we get renters, might want to do section 216 as well to recoup some of the 25% tax on rental income.

nelsona · Post by **nelsona** » Mon Apr 25, 2016 12:09 pm

That is indeed a separate issue.

nelsona · Post by **nelsona** » Mon Apr 25, 2016 12:10 pm

That income would also count towards you income for the year, making less of your RRSP withdrawal tax-free.

eortlund · Post by **eortlund** » Mon Apr 25, 2016 12:18 pm

Figured that would be the case! Hopefully the house will sell!

eortlund · Post by **eortlund** » Mon Apr 25, 2016 12:58 pm

If we end up owing money to the IRS on the RRSP withdrawals even after accounting for Canadian tax, can we use our excess carryover foreign tax credits from past years to offset?

nelsona · Post by **nelsona** » Mon Apr 25, 2016 1:31 pm

Yes, that is why you carried forward those amounts. RRSPs are genral limitation income.
I doubt that you will use up all the Cdn tax form 2016 to be able to tap the carryforward, but who knows.

eortlund · Post by **eortlund** » Mon Apr 25, 2016 1:42 pm

Very good