I've read all the threads and I'm aware of the different options using either the Foreign Tax Deduction or Foreign Tax Credit. Also aware that the taxable amount is not the same as the RRSP distribution.
I am in a situation where my distribution (Year: 2016), in USD, is smaller than the Cost-Basis of my RRSP when I left Canada (Year 2015) as non-resident.
The losses are mainly due to the exchange rate: -$2378
If I use the Foreign Tax Credit, Turbotax properly reports the loss on 1040, Line 32. It also gives me a $0 Foreign Tax Credit with the full credit as carry-over, as expected.
If I use the Foreign Tax Deduction, Turbotax only asks about the foreign taxes but doesn't inquire about the losses/gains. Where can I capture this loss to further reduce my tax? (form/line)
Loss using Foreign Tax Deduction during RRSP Distribution
Moderator: Mark T Serbinski CA CPA
This is NOT a loss on 1040. Pensions can not lose until they are fully collapse. This is called a terminal loss, on schediule A . 1040 Line 32 is for IRA deduction, which has nothing to do with this.
You cn either use the Cdn tax as a credit, for carry forward, or you can use as a deduction.
However you cannot to get it as a loss, was not correct.
You cn either use the Cdn tax as a credit, for carry forward, or you can use as a deduction.
However you cannot to get it as a loss, was not correct.
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