U.S. citizen receives RRIF from deceased Canadian relative

ina · Post by **ina** » Mon Feb 13, 2012 7:13 pm

If a US citizen receives a cheque from the collapsed RRIF of a deceased Canadian relative how should this be reported on US tax return? Is it a gift? An inheritance? (Not sure if there is a difference in terms of reporting or taxing.) The Canadian income tax on the RRIF was paid by the deceased's estate. The RRIF was outside the estate with named beneficiaries who are U.S. citizens but not spouse, child, or disabled.

nelsona · Post by **nelsona** » Mon Feb 13, 2012 7:37 pm

The RRIF was cashed in and paid to the estate, and you then got a check. so this is a gift to you, not taxable in your name in either US or canada. Only if it is more than $100K should it be reported on from 3520, but never taxable.

ina · Post by **ina** » Mon Feb 13, 2012 7:48 pm

The RRIF was cashed in, but did not go to the estate. It was divided between the beneficiaries, although the Canadian income tax was paid by the estate

nelsona · Post by **nelsona** » Mon Feb 13, 2012 9:24 pm

If the tax was paid by the estate, then the RRIF was paid thru the estate.

in any event, you got what as left, so none of it is taxable to the inheritors, be they in US or canada.