Tax rules, especially when dealing across International borders, can be complicated and cumbersome.
Here’s a (rare) piece of good news that may simplify your tax life! According to this article, Canadians who are also US taxpayers will no longer need to file special form 8891 to get tax relief on accrued income in their RRSPs. As long as the person continues to file a US tax return and include any distributions from the RRSPs on the US tax return, he or she will qualify for the deferral of tax.
For more information, please read more at http://www.advisor.ca/tax/tax-news/irs-drops-form-8891-for-rrsps-165705
For a more in-depth read, please refer to http://www.irs.gov/pub/irs-drop/rp-14-55.pdf
The information presented is only of a general nature, may omit many details and special rules, is current only as of its published date, and accordingly cannot be regarded as legal or tax advice. Please contact our office for more information on this subject and how it pertains to your specific tax or financial situation.
This post has been prepared for general information purposes. It is not advice. The information presented may not fit your unique situation, please consult one of our trusted business advisors at RHN CPA for further clarification and interpretation of your particular circumstances.