Using RRSP to make a Canadian mortgage deductible - NO - David Ingram, Fred Snyder - Singleton, Overs, Evans, Lipson GAAR
Message: question for david ingram:
in reading this passage from your november 2001
newsletter, i am wondering if this strategy can be used for
mutual funds held in a rrsp?
quote from newsletter:
reinvested dividends, take the dividends into your
own hands and pay down the mortgage and
borrow the money to buy “about the same” amount
of mutual funds that the dividends would have
bought. this works, even if you borrowed the money to
buy the mutual funds in the first place. "
----------------------------------------------------------------------
This does not work for money that is tied up in an RRSP.
For a free seminar on making your Canadian mortgage deductible , read on
Leave Sunday,
August 12th open. I will be conducting a FREE three part seminar on that
date at the Holiday Inn at 711 West Broadway in Vancouver.
12 noon to
2:30 PM
- Mortgage
Interest as a deduction including
Singleton (won), Overs
(won), Evans(won) and Lipson (lost) Cases.
3 PM to 5
PM
- Reporting rules
for US persons with Canadian Financial Accounts
and Canadian
RRSP accounts.
Simply put, a US citizen with no US income whatsoever is
supposed to file a US tax return no matter where they live in the world.
More important than that, is the fact that if the US citizen
has a Canadian RRSP, it is considered a foreign trust. Assuming that there
is more than $10,000 US in all the US persons foreign
accounts, failure to report the foreign trust (RRSP) to the IRS AND the
Department of the Treasury can result in minimum fines of $10,000 (per foreign
account) and maximum fines of $500,000 plus 5 years in jail plus 35% of the
money in the RRSP plus 5% for every year not reported.
- O U C H !!!
5:30 to 7:30
PM US Tax returns - who has to
file - aimed at Canadians who have been working in the US and Americans living
in Canada or Canadians with rental property in the US on
which they are losing money. Snowbirds should attend this as well if they are in
the USA more than 120 days a year.
Anyone intending to attend this
seminar about mortgage interest or when a Canadian has to file a return should
read the November 2001 newsletter for mortgage interest and information about
what Canadians have to file a US return.
If they are a Snowbird,
they should read the April 1994 newsletter.
If they are a dual citizen,
the Oct 1993 newsletter - These can be found at www.centa.com in the top left
hand box.
Then anyone who is filing both returns should go to the
second box down on the right hand side and read the US/Canada Taxation section.
Print the above out. Highlight questionable sections and bring
them along to the seminar so you remember your
questions.
-----------------------------------
Those interested in the
mortgage interest as a deduction concept should read Fraser Smith's, "The Smith
Manoeuvre", available at any good bookstore although you may need to have them
order it for you.
Phone Fred
Snyder’s Office at (604) 731-8900 to register for
all or any of the seminars.
david
ingram – [email protected] (604) 980-0321
David Ingram's US / Canada Services
US / Canada / Mexico tax, Immigration and working Visa Specialists
US / Canada Real Estate Specialists
My Home office is at:
4466 Prospect Road
North Vancouver, BC, CANADA, V7N 3L7
Cell (604) 657-8451 -
(604) 980-0321 Fax (604) 980-0325
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 for expert help, assistance, preparation, or consu
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