This question is more in general to the entire LIRA account. I have transferred an old pension to a self-directed LIRA account and just trying to get all the info I can on the tax side of things for the account. And more specific is the US holdings in a LIRA account. Is the 15% non-resident tax exempted in this account? If it isn't, what is the best way to navigate this so US exposure is included in portfolio. Thanks all in advance for the info.

Any investment that you had in U.S.A. prior to entering CANADA in a pension plan, is still considered as one in Canada. Also, every year if it appreciates in its value, you will have to report it as investment income. But if you withdraw and pay any taxes there, you can report the taxes paid as FOREIGN INVESTMENT TAX and claim relief here in Canada.

The only way you could have saved a reporting here was to liquidate ALL OF THE LIRA, prior to entry and pay only the US tax there and hold on to it.

Alternately, leave it there till it matures or permits you to receive it FREE OF With holding tax after you reach 55. So, you can now plan to leave it and pay tax on the gains every year and withdraw the same at 55 and after. Please consult an INTERNATIONAL Tax Consultant and see if it is taxfree here in Canada prior to making such a decision. If it is, please drop us a note here for me and others.

Hope this helps.

FH.



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Originally posted by delgrae

This question is more in general to the entire LIRA account. I have transferred an old pension to a self-directed LIRA account and just trying to get all the info I can on the tax side of things for the account. And more specific is the US holdings in a LIRA account. Is the 15% non-resident tax exempted in this account? If it isn't, what is the best way to navigate this so US exposure is included in portfolio. Thanks all in advance for the info.

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