This is a multi-part message in MIME format.
---------------------- multipart/alternative attachment
Subject: hi
I am a Canadian citizen working in the US and am a green card holder. Can I use my RRSP holdings in Canada to purchase property in Canada? Or do I
have to cash out my RRSP to do so? Are there any implications I should be aware of?
Thanks,
HXXXXXXXXX
===================================
david ingram replies:
You can not use your RRSP to buy property. You would have to cash in the RRSP and pay 25% tax of the withdrawal as your only Canadian tax as a non-resident. You could then use the 75% left to buy your property.
For your US return, you would have to calculate the internal earnings of the plan since you went to the US and if your return has been prepared properly, you will owe federal tax on that amount which you will have reported each year under REV.PROC 89-45 and REV.PROC 2002-23.
Since California State does not recognize the Treaty or the Federal Revenue Procedures, you will have already paid tax on the internal earnings since moving to California..
If you are buying Canadian Rental property, you will also have to file Canadian Form NR6 BEFORE your first month of rental and have a Canadian Resident agent officially take command of your Canadian Return by signing that NR6.
At the end of the year your agent will file an NR4 Summary and Supplementary for you by March 31st and then file a Canadian Income tax return for you under section 216(4) by June 30th.
The figures on the Canadian return must then be converted to USA dollars and reported on Schedule E of your US 1040 and your California 540 returns. If you have paid tax to Canada, you will claim a foreign tax credit on your US return by filing form 1116.
We, of course arte ideally suited to look after this being a licenced real Estate company with a property management associate and the ability to prepare all three returns for you (four returns if you are married and the property is owned by both of you in Canada).
David Ingram's US/Canada Services
US / Canada / Mexico tax and working Visa Specialists
US / Canada Real Estate Specialists
4466 Prospect Road
North Vancouver, BC, CANADA, V7N 3L7
Res (604) 980-3578 Cell (604) 657-8451
(604) 980-0321
New email to [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"
This from "ask an income tax and immigration expert" from www.centa.com or www.jurock.com or www.featureweb.com. Canadian David Ingram deals daily with tax returns dealing with expatriate:
multi jurisdictional cross and trans border expatriate problems for the United States, Canada, Mexico, Great Britain, the United Kingdom, Kuwait, Dubai, Saudi Arabia, Thailand, Indonesia, Japan, China, New Zealand, France, Germany, Spain, Italy, Russia, Georgia, Brazil, Peru, Ecuador, Bolivia, Scotland, Ireland, Hawaii, Florida, Montana, Morocco, Israel, Iraq, Iran, India, Pakistan, Afghanistan, Mali, Bangkok, Greenland, Iceland, Cuba, Bahamas, Bermuda, Barbados, St Vincent, Grenada,, Virgin Islands, US, UK, GB, American and Canadian and Mexican and any of the 43 states with state tax returns, etc.
Your name has been added to our email list because of an enquiry we have received, we may not answer your question but
another similar question will be as we lump them.
You may find more answers at www.centa.com
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
.
---
Incoming mail is certified Virus Free.
Checked by AVG anti-virus system (http://www.grisoft.com).
Version: 6.0.532 / Virus Database: 326 - Release Date: 10/27/03
---
Outgoing mail is certified Virus Free.
Checked by AVG anti-virus system (http://www.grisoft.com).
Version: 6.0.532 / Virus Database: 326 - Release Date: 10/27/03
---------------------- multipart/alternative attachment
An HTML attachment was scrubbed...
URL: http://www.centa.com/CEN-TAPEDE/centapede/attachments/b92c5a9f/attachment.htm
---------------------- multipart/alternative attachment--
What's Related