Unrealized RRSP Gains

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Min_493
Posts: 2
Joined: Sun Apr 13, 2014 4:17 am

Unrealized RRSP Gains

Post by Min_493 »

My RRSP is held with a broker. The account has both cash and securities.

I have been reporting my total portfolio value in US dollars at the end of the year on Form 8891. I live in CA so I will be taxed on RRSP earnings (interest, dividends, and capital gains). How are unrealized capital gains and losses treated?

Am I correct in reporting the total portfolio value on Form 8891 or should I be reporting the cash balance where interest, dividends, and capital gains are paid into?

Thanks
nelsona
Posts: 18311
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Post by nelsona »

For, cali, you simply treat the account like any other investment account, so all the periodic dividends, etc and any cap gains/llosses from sales are reported to cali (not to IRS).

On 8891, you simply show the year-end value of that RRSP.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing :D
Min_493
Posts: 2
Joined: Sun Apr 13, 2014 4:17 am

Post by Min_493 »

Thank you. No other state seems to tax RRSP earnings.

Distributions are treated as taxable income by the IRS and all states. If I live in CA for a few yrs and then move elsewhere, how can I prevent double taxation by another state on the "CA earnings portion" of a distribution?
nelsona
Posts: 18311
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Post by nelsona »

Good question. You don't. The trouble is that all the other 49 states will take the fed value.

Besides, just because you paid cali tax in one year, why would the other states have to honor it in some future year.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing :D
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