Unrealized RRSP Gains

Min_493 · Post by **Min_493** » Sun Apr 13, 2014 4:36 am

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 · Post by **nelsona** » Sun Apr 13, 2014 9:05 am

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.

Min_493 · Post by **Min_493** » Sun Apr 13, 2014 2:01 pm

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 · Post by **nelsona** » Sun Apr 13, 2014 8:47 pm

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.