rrsp deduction limit

January 15th, 2006 by Questions

I have accumulated an RRSP deduction limit over the past 10 years since I have never put money into any RRSP.

Will filing for bankruptcy eliminate this deduction limit and set it back to nil?


One Response to “rrsp deduction limit”

January 17, 2006 at 10:27 am, A licensed trustee said:

That is a very good question. Unfortunately, neither the Income Tax Act nor the Bankruptcy and Insolvency Act deals specifically with all of a persons various tax accounts. By that I am referring to things like your RRSP carryforward limit, Capital Gains exemptions, Loss carryforwards, etc.

I can tell you this – based on the Notices of Assessment that we have received for POST-bankruptcy tax returns, it does not appear that the RRSP carry-forward has been affected by the bankruptcy. That is, the carry-forward amounts for the clients that we have processed have not been lost.

I am sorry I can’t provide you with a more definitive answer.

Please post a follow up comment below:

(Note: comments are reviewed by moderators and then posted after approval. In addition, due to high volume some of the comments might not be posted.)