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?
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.
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