Canadian H1B holder sells her RRSPs while living in the

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Hi David,
One more quickie question on that matter--I gather that as a non-resident of Canada, I have to pay 25% tax in Canada on the gross sale of the RRSP's.  
Do I get to deduct anything for the losses sustained on these investments?
Cxxxxxxxxxxxxxx
P.S. No bonds, no securities--really pathetic!
I'm 55, in debt for school and no retirement funds--I guess I'll be working till I drop!
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david ingram replies
CXXXXXXXX, it isn't that bad, you will come out with a newly minted PhD, more experience and hopefully US citizenship.
In addition, you will qualify for full US social security medicare when you retire and a Social Security pension AND will be able to collect Canada Pension Plan and some OAS as well.
It is NOT that bad. 
However, back to your RRSP question.  You got the deduction on your Canadian Tax Return when you put the money into the plan.  
Let's assume you put in $20,000 and received a $8,000 tax refund.  Now you are cashing in the $4,000 left and are only paying tax of $1,000.00 tax.  You have already had the beneift of the loss.  On the other hand, the US does not look at it that way.  
We will be able to deduct the capital loss on your US return because they do not have a deemed disposal or acquisition on these funds when you crosed the border.  The US does not recognize it as a registered deductibel plan either. 
Therefore, next year we will create the loss when you file your return.  Good news all around.
Just remember, Be aLERT - the world needs more lerts
david
(now to try and figure out how to make this a broadcast.  Felt good writing it.)
-  
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."
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