Withdrawing RRSP in small amount after

My_question_is: Applicable to both US and Canada Subject: Withdrawing RRSP in small amount after leaving Canada Expert: taxman at centa.com Date: Tuesday August 01, 2006 Time: 05:57 PM -0700 QUESTION: After leaving Canada to US, can I not withdraw about $ 8000 per year from RRSP and claim that withdrawl as Canadian income with zero income tax? If no, what is your advise? ================================== david ingram replies: When you are a non-resident of Canada, you do not get any personal exemption amounts. therefore any income earned or received form Canada is taxable from the first dollar. However, if you take money out of an RRSP, Section 212 dictates that the payer must deduct 25% tax and remit it to the CRA. In addition, depending upon which country you are in, the withdrawal may be taxable there as well. The US and Australia, for instance require you to report internal earnings of your RRSP when resident in those countries. In the US, you can exempt the income by filling in form 8891 and every state but California recognizes that strategy. If you are living in California, the internal earnings are taxable on your 540. ============================================================= David Ingram's US / Canada Services US / Canada / Mexico tax, Immigration and working Visa Specialists US / Canada Real Estate Specialists My Home office is at: 4466 Prospect Road North Vancouver, BC, CANADA, V7N 3L7 Cell (604) 657-8451 - (604) 980-0321 Fax (604) 980-0325 Calls welcomed from 10 AM to 10 PM 7 days a week Vancouver (LA) time - (please do not fax or phone outside of those hours as this is a home office) email to taxman at centa.com <mailto:taxman at centa.com> www.centa.com <http://www.centa.com/> www.david-ingram.com <http://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 for expert help, assistance, preparation, or consultation in connection with personal or business affairs such as at www.centa.com <http://www.centa.com> . If you forward this message, this disclaimer must be included." Be ALERT, the world needs more "lerts" David Ingram gives expert income tax & immigration help to non-resident Americans & Canadians from New York to California to Saudi Arabia to Mexico to China or Chile - Cross border, dual citizen - out of country investments are all handled with competence & authority. 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