Canada Non-Resident - Sale of Property and RSP Withdrawal

[hmccannell]

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]

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]

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.