Hi Dave,
No, the NR4 reports the gains from the date of death to the date of the distribution. I understand that Canadian law considers the RRSP to be fully liquidated (if that is the right word) at the moment of death, and the taxes are due to the estate. And taxes on any gains from the date of death are due to the beneficiary.
In this case the NR4 income is small (<5k) and reports that difference. I received the money as part of the lump sum distribution but the NR4 also reports the 25% taxes that were withheld on that smaller portion.
My understanding is that the bulk of the payment is the "gift" portion, I need to report on my 3520 but not as income, and the smaller part is income I need to report in my taxes. And I need to file the FBAR even though I never had control over the account, simply because I "owned" it in some way for a short period of time.
I've did seek out advice from several independent and authoritative sources (the bank, tax attorney) just recently. So I am pretty confident in that part. I just now need to figure out how to report it properly in Turbotax and claim the credit for the foreign taxes paid.
I haven't had a chance to re-try to trigger the foreign tax credit section for the misc income. I'll give it a shot when i get home from work.
