Tax Issues

New Tax Treaty between Canada and U.S.

presented by U.S. Treasury Department

A consolidated version of the Canada U.S. tax treaty with amendments made by the fifth protocol incorporated.

Taxable Portion of RRSP withdrawals for US taxpayers

Computing the nontaxable portion of an RRSP withdrawal for a US citizen or resident can be a difficult. Even the rules for lump sum withdrawals or RRIFs and annuities are quite different. The first thing to do is determine your "investment in the contract" Our worksheet is available help determine your cost for US tax purposes.

Summary of RRSP Contributions and Earnings Worksheet

Complex rules, which change depending on the year of contributions, may allow for a portion of RRSP/RRIF withdrawals to be tax free for U.S. federal tax purposes. Different states may have different rules than federal. NJ, CA and GA in particular do not recognize tax deferral on earnings in an RRSP.

Taxable Portion of United Nations Pensions for Canadian Residents

The attached paper was prepared for Canadian resident recipients of pensions from the United Nations - a U.S. source pension. The Canada U.S. Tax Treaty allows for taxing the pension in Canada under U.S. rules. The topics covered cover most tax issues for both US and Canadian residents on determining the  taxable portion. In many cases both contributions by the taxpayer and the employer can be excluded.

Taxation of UN pensions for Canadian Residents

IRS Revenue Procedures, Rulings and Notices

Rev. Proc. 2010-19

Procedures for electing under Article XIII(7) of the Tax Treaty regarding Deemed Dispositions by Individuals Emigrating from Canada. (Basis step-up for U.S. purposes)

Rev. Proc. 2006-54

Procedures for requesting Competent Authority Assistance under Tax Treaties

Transfer of an RRSP to IRA

PLR 9833020

The Internal Revenue Service has determined that an American may NOT transfer an RRSP to an IRA.

Rev. Proc. 2004-37

Determining source of a U.S. pension to nonresident aliens for calculating nonresident withholding tax

Rev. Proc. 2003-75

RRSP & RRIF Information reporting

Notice 2003-25

Information with respect to certain foreign trusts - Canadian RRSPs

Rev. Proc. 2002-23

Election to defer United States income tax on the earnings accrued in an RRSP for years after 2001. This has been updated by IRB 2014-44.

Notice 97-34

Requirement to file forms 3520 or 3520-A for Canadian RRSPs

Notice 96-31

Treatment of RRSP Earnings and Distributions

Rev. Ruling 89-95

Rollovers Between Canadian Retirement Plans will qualify for tax deferral under U.S.-Canada Tax Treaty

Rev. Proc. 89-45

Election to defer United States income tax on the earnings accrued in an RRSP for years after 1998 and before 2001

CCRA Interpretation Bulletins, Information Circulars and Letters

Roth IRAs held by Canadian Residents

Revenue Canada discusses their position on Taxation of Roth IRAs under the new treaty rules.

Transfer of an IRA to RRSP

Revenue Canada discusses their position on rules for transfers of IRAs to RRSPs

Letter 2003-0182835

Tax Deductibility of a 401(k) transfer to IRA followed by a transfer to RRSP


Canada - U.S. Tax Convention - Number of Days present in Canada


Determination of an Individual's Resident Status


Capital gains derived in Canada by Residents of the United States


United States Social Security Taxes and Benefits


Canada U.S. Social security Agreement

Letter 2000-0018195

Canadian residents are taxable on amounts contributed to U.S. pension plans for Canadian purposes only


Deemed disposition and acquisition on ceasing to be or becoming a resident in Canada

Gary P. Gauvin LLC

International Tax

2500 Rochelle Rd

Rockwall, Texas 75032

Voicemail Phone: (469) 273-3399

FAX:    (972) 772-4184


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