Tax advisor / Steuerberater for a Canadian

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I'm looking for a Steuerberater with good experience with Canadian clients.

 

For example, I need to know whether there is income tax (not inheritance tax) on an inherited tax-free savings account (TFSA). I spoke to a lawyer who specializes in international inheritance cases, and he said it was complicated and he could only guess, based on how a US Roth IRA is taxed. I'd really like to find someone who has actually dealt with an inherited Canadian TFSA, with the Finanzamt, and similar issues. Any recommendations?

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You don't need a  Seuerberater with good experience with Canadian clients, as a non resident of Canada withholding tax, if any,  is applied at source. It's very simple. For example when I cashed out my RRSP TD bank kept back 25%. 

 

So the question is very simple, I got an inheritance from my Gramma is that taxable. Simple as that. 

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Unlike an RRSP, a TFSA is not taxable at all in Canada, so there's no withholding tax. The German lawyer suggested that because the earnings were tax-privileged in Canada but not in Germany, all past earnings, i.e. the difference between the contributions and the final value at death, might be subject to income tax in Germany if I inherit it. But he didn't know for sure, and said he would have to spend time researching it. I'd rather not finance his education, so I'd like to find someone with direct experience.

 

I have some other related issues that I need help with. For example there's also a RRIF, which the estate will pay tax on, but the lawyer says I wouldn't get a tax credit for that, and would have to pay income tax in Germany, but I find that hard to believe. The tax treaty should prevent double income tax. If there are huge tax bills, I might end up disclaiming the inheritance, and it will go to another family member in Canada. If not, I'll need help with dealing with tax returns and so on.

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StarshollowYeah just went through all of that trying to cash out my wife's locked-in RRSP. I must say TD Waterhouse was fantastic, super helpful.

 

Couple of general notes.

 

Canada doesn't have an inheritance tax, instead you have a deemed dispossession, as if you sold everything the day before you died. Obviously this won't affect you.

Withholding tax : 15% on periodic payments, for example RIF or pension. 25% on lump sum payments, such as when you cash out your RRSP. 

No need to file a CDN tax return

Real estate is a totally different animal - not very familiar with that. Rented out our property when we first moved here and than sold it, not worth the hassle. 

 

Now once that is cashed out the next step is what happens in Germany. 

 

General rule of thumb your taxed on your world wide income but as this will be an inheritance there are different rules I found this

 

Quote

with 150k inheritance from your father you have NOT to pay any inheritance taxes. Children and spouses can inherit up to 400k EUR without being liable for taxes - only amounts in excess of this are then liable to be taxed. The link is to the complete set-up, first table shows to which inheritance tax class someone belongs depending on the relationship to the deceased. Second table show which amounts are tax free based on tax class/relationship and finally the third class is what tax rates you have to pay if your inheritance is in excess of these tax-free limits. via Starshollow

 

So assuming it's not a massive sum it shouldn't cause any tax issues, which is a nice feeling!!!!

 

If it's larger amount than it might be worth contacting many of the English speaking Steuerbreaters that advertise here and pay them for a consultation. It would be money well spent. 

 

Hope that helps. 

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