Generally, inheritances, whether from a Canadian or foreign estate, can be received tax free.The judge acknowledged that while the taxpayer did, indeed, receive the funds “as a result of his father’s death and while generally the receipt of an amount distributed from an estate does not in itself trigger tax, there are two important considerations here.”The first is the taxpayer received the amount as a distribution from an IRA and not from his father’s estate.Secondly, there is a specific rule in the Canadian Income Tax Act covering such distributions that states a taxpayer must include in income any pension benefit “payment out of a foreign retirement arrangement established under the laws of a country.” Our tax regulations state that an IRA is a prescribed plan for the purposes of this rule.As a result, the judge concluded the IRA payment to the taxpayer “is clearly a ‘payment out of’ a ‘foreign retirement arrangement’ within the meaning of (the Act),” and must be included in the taxpayer’s Canadian income.”The result of this legislation is to treat the IRA distribution in much the same way as if it were a distribution from an RRSP of his father,” the judge said. Tax was withheld the (taxpayer) benefited from a foreign tax credit.”Could the taxpayer have done anything differently? We are often asked whether an IRA can be transferred, tax free, to a Canadian RRSP. The short answer is yes, but it’s complicated and not always worthwhile.For Canadian tax purposes, Rob would include the $100,000 in his Canadian tax return as foreign pension income (as illustrated by the mechanics in the case above), but he would get an offsetting deduction for a $100,000 RRSP contribution since there is a special rule that allows you to contribute IRA funds to an RRSP without needing unused RRSP room..
Charles Frederick ran for three touchdowns Friday night and Isiah Howard threw for two more as Boynton Beach spoiled Ray Berger’s second debut as head coach for Santaluces with a 33 16 victory over the Chiefs. “When our star running back got hurt, I just wanted to step it up,” said Frederick. “It feels great.” After a scoreless first quarter, the Tigers (1 0) got on the board when Howard hit Craig Davis with an 11 yard touchdown pass.
“Downtown” Salisbury (incorporating Lakeville and Lime Rock) consists of just a few shops and eateries. First thing in the morning, locals, second home owners, and tourists gather at Sweet Williams for warm, ethereal, just out of the oven Ginger Apricot scones, croissants, and cookies, and deeply flavored coffee and freshly squeezed lemonade. Next door, the Ice Cream Shop doles out Bette Midler’s favorite brand of frozen sweet stuff Kingston NY based Jane’s Ice Cream, seemingly made of 1000% butterfat.