Should Los Angeles lady cash in her Canadian RRSP

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Hi David,
You have been doing my taxes since I moved to Los Angeles 2 years ago--thank you.  
Gail Ritter suggested to me that after I graduate (Ph.D.) and before I get my permanent residence here I should cash in my RRSPs.  I have still to find out more about my superannuation, but I looked today at my RRSPs and they look terrible!  Should I be optimistic enough to hang on to them for another 3-4 years, or would I be wiser to sell, and if I do, what kind of tax deduction, if any, would I get?  Since I'm struggling to make it through school with tuition at over $12,000 a year, tax refunds, extra deductions, etc. are enormously valuable, and every time I think I can pay down my credit card, or my line of credit, my 11-year-old car needs a new battery, or new tires, or something!  On the other hand, at 55 I have no savings other than these RRSPs and the superannuation (which will be very small because I worked part-time the last few years of my job) and owe $22,000 Canadian borrowed for tuition to date.
Here is today's dismal picture of what I have (the time to get out of Ballard was exactly when the account was being transferred and inaccessible--talk about bad luck!).
Any thoughts would be most welcome.  I assume that if you post this on the newsletter you will keep confidential the details of my dreadful financial picture!
CXXXXXX
            My Balances as of Friday, October 03, 2003  
     
              Cash Balance Market Value Equity 
                    
            Canadian Balances (in Canadian Dollars)   $ 131.91  $ 4,832.00  $ 4,964.00 
            Combined Balances (in Canadian Dollars)*   $ 131.91  $ 4,832.00  $ 4,964.00 
     
     
      If you are holding Bonds in your portfolio, Accrued Interest may or may not be included in this online Account Summary.  
      * Total Account Values do not include securities held in safekeeping. For example, if your account holds certain Canada Savings Bonds their value is NOT reflected in the totals.  
      Display In:  Canadian Dollars  Settlement Currency  
--------------------------------------------------------------------------------
      My Canadian Positions (In Canadian Dollars) as of Friday, October 03, 2003  Sort Alphabetically 
            Position Qty. Price Market Value Book Value Change   
            COMMON SHARES              
            APPAREO SOFTWARE INC NEW   1,050  $ 0.00  $ 0.00  $ 1,540.00  $ -1,540.00  - Action -             Buy Sell Quick Quote Detailed Quote Chart & First Call Snapshot Add to Watchlist 
            BALLARD POWER SYSTEMS INC   150  $ 19.02  $ 2,853.00  $ 16,200.00  $ -13,347.00  - Action -             Buy Sell Quick Quote Detailed Quote Chart & First Call Snapshot Add to Watchlist 
            FUEL CELL TECHNOLOGIES CORP   230  $ 0.52  $ 119.00  $ 1,025.90  $ -906.90  - Action -             Buy Sell Quick Quote Detailed Quote Chart & First Call Snapshot Add to Watchlist 
            Sub-Total      $ 2,972.00  $ 18,765.90  $ -15,793.90   
           
            MUTUAL FUNDS              
            C.I. GLOBAL SCIENCE & TECH SECTOR SHARES (203)   31.997  $ 11.06  $ 353.89  $ 1,430.00  $ -1,076.11  - Action -             Buy Redeem Switch Quick Quote Detailed Quote Fund Profile Chart Add to Watchlist 
            FIDELITY INTERNATIONAL PORTFOLIO FUND C$ (DSC) (530)   48.634  $ 24.87  $ 1,209.53  $ 1,697.55  $ -488.02  - Action -             Buy Redeem Switch Quick Quote Detailed Quote Fund Profile Chart Add to Watchlist 
            FIDELITY INTERNATIONAL PORTFOLIO FUND ISC (230)   13.509  $ 24.87  $ 335.97  $ 466.22  $ -130.25  - Action -             Buy Redeem Switch Quick Quote Detailed Quote Fund Profile Chart Add to Watchlist 
            Sub-Total      $ 1,899.39  $ 3,593.77  $ -1,694.38   
           
            Total value of all my Canadian Securities      $ 4,871.39  $ 22,359.67  $ -17,488.28   
     
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david ingram replies:
My answer may surprize you because it means we charge you less after the 2003 return but I have no problem giving it.
You should cash in your RRSP.  At the moment, it is too small to be meaningful today.  I do not think there is any chance that Ballard or Fuel Cell Technologies will ever recover to their former glory and my thought is that Ballard makes Bre-X look like a real gold mine. Making a fuss about Ford or Daimler investing in Ballard was all window dressing.  Ford and Daimler did not invest in Ballard for any other reason than to be onthe inside "just in case" Ballard did come up with something of value.  The Coleman deal has been a fiasco and my understanding is that the Vancouver Test on the buses was a sheer waste of time for BC Transit (or Caost Mountain Bus if you prefer).
If you sell it now, you will pay Canada 25% tax.  There will be no tax to the USA.  
That will give you a small nest egg to spend down at a $150 a month for a year and make life a little better now when things are really tight.  In addition, although the reporting will be a pain this year (2003), you will then not have to bother with the RRSP reporting rules in the future. If nothing else, that makes your tax return preparation cheaper.
I will use this as a CEN-TAPEDE but will do my best to disguise you as usual.
Thanks for writing.  
david 
David Ingram of the CEN-TA REALTY  Group
US / Canada / Mexico tax and working Visa Specialists
US / Canada Real Estate Specialists
108-100 Park Royal South
West Vancouver, BC, CANADA, V7T 1A2
(604) 980-0321 - Fax 913-9123 [email protected]
www.centa.com www.david-ingram.com
Disclaimer:  This question has been answered without detailed information or consultation and is to be regarded only as general comment.   Nothing in this message is or should be construed as advice in any particular circumstances. No contract exists between the reader and the author and any and all non-contractual duties are expressly denied. All readers should obtain formal advice from a competent and appropriately qualified legal practitioner or tax specialist in connection with personal or business affairs such as at www.centa.com. If you forward this message, this disclaimer must be included."
Be ALERT,  the world needs more "lerts"
 
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