Real estate, RRSP, and future move

[EmilyandJason 0]

Thank you for all the replies; I'll try to track that book down. Selling the house vs. renting it for income has always been a wrestling match in my mind, but that's probably financial-advisor conversation material.

The other issue with renting the property is you will have to pay non-resident withholding tax on the net rental income. There will be forms to fill out and send to Canada Revenue Agency. You can find more information here: http://www.cra-arc.gc.ca/menu-e.html

As far as the RRSPs go, you can choose to leave them in Canada without any tax affect. You can later withdraw funds, subject to a 25% non-resident withholding tax and then contribute amounts to an IRA in the US.

I absolutely recommend that you get professional advice from an accountant familiar with these issues.

[Flames9_RN 358]

I'll sell ya that book!! Brand new condition! Let me know whats the cheapest u can find it at, and I will beat it,lol

[MarkNAshley 0]

the RRSP question depends a little on what year you withdraw it from the account. If you are a foreign resident at time of withdrawal from the RRSP account you will be charged a 11%(last I checked) withholding tax but not eligible for canadian income tax since you are not a resident and Canadian taxation is based on residency.

Once you have the funds in the US they are eligible for US income tax (There is a special form for RRSP withdrawals) you should be able to write off the withholding with a foreign tax credit so you won't have to pay double tax.

I haven't heard a way to roll them over into a US IRA without paying tax first but someone with more US accounting experience might be able to help.

Hope this helps

Mark

[Flames9_RN 358]

Took my RRSPS out as a non resident of canada, and I belive they took off 25%!!

IRS form 8891 deals with RRSP's