US taxation of Deemed Disposition of RRIF at Death

[Stevecanada]

My father was a U.S. citizen living in Canada - he passed away in January 2025. At the time of his death, he had a Canadian RRIF worth about CAD $30,000. The RRIF was fully paid out in February 2025 to me. I understand that the fair market value (FMV) of the RRIF at death will be taxed by the CRA as income on my father’s final 2025 Canadian return as a “deemed disposition”. I am a Canadian citizen and resident - I am not a US person for tax purposes. My Question: How will the deemed disposition of the RRIF be taxed by the IRS? Specifically, should I include the FMV of my father's Canadian RRIF as of the date of his death as income on my father's final U.S. 1040 income tax form?

[nelsona]

Just so we are clear, the RRIF is actually disposed, not "deemed", since it was paid out.

The RRIF becomes part of his estate, subject to estate tax. Any Cdn tax would be used against any US estate tax that would arise, but the estate tax exemption is so large that it is unlikely that there would any US estate tax owing.