+1(514) 937-9445 or Toll-free (Canada & US) +1 (888) 947-9445

Canada Non-Resident - Sale of Property and RSP Withdrawal

hmccannell

Newbie
Feb 6, 2017
1
0
I am a Canadian citizen who lives in the US and for tax purposes a non-resident of Canada.
We had a rental property in Canada in which we reported the rental income each year.
This past year, we sold the property for a loss in addition to doing an RRSP withdrawal in which we already paid the non-resident 25% tax.
Question is when competing the Cdn tax return, can we net the loss from our rental property against the RRSP withdrawal to recoup some of the tax already paid?
 

Rob_TO

VIP Member
Nov 7, 2012
11,427
1,551
Toronto
Category........
FAM
Visa Office......
Seoul, Korea
App. Filed.......
13-07-2012
AOR Received.
18-08-2012
File Transfer...
21-08-2012
Med's Done....
Sent with App
Passport Req..
N/R - Exempt
VISA ISSUED...
30-10-2012
LANDED..........
16-11-2012
hmccannell said:
I am a Canadian citizen who lives in the US and for tax purposes a non-resident of Canada.
We had a rental property in Canada in which we reported the rental income each year.
This past year, we sold the property for a loss in addition to doing an RRSP withdrawal in which we already paid the non-resident 25% tax.
Question is when competing the Cdn tax return, can we net the loss from our rental property against the RRSP withdrawal to recoup some of the tax already paid?
I'm pretty sure the answer is no. Home sale would be a capital loss, which can only be used to reduce other capital gains.
RRSP withdrawals are counted as regular income, so can't apply a capital loss to reduce it.

Though best to check with an accountant to make sure.
 

scylla

VIP Member
Jun 8, 2010
92,541
20,360
Toronto
Category........
Visa Office......
Buffalo
Job Offer........
Pre-Assessed..
App. Filed.......
28-05-2010
AOR Received.
19-08-2010
File Transfer...
28-06-2010
Passport Req..
01-10-2010
VISA ISSUED...
05-10-2010
LANDED..........
05-10-2010
Rob_TO said:
I'm pretty sure the answer is no. Home sale would be a capital loss, which can only be used to reduce other capital gains.
RRSP withdrawals are counted as regular income, so can't apply a capital loss to reduce it.

Though best to check with an accountant to make sure.
Agreed with this. The answer is no.