California Taxation of Real Return Bonds

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worryfreeinvestor
Posts: 148
Joined: Thu Mar 24, 2005 6:17 pm
Location: Park City, Utah

California Taxation of Real Return Bonds

Post by worryfreeinvestor »

We know that California will tax the income that is actually earned on Real Return Bonds held in an RRSP (just as if it were a normal bond). However, does California also tax the phantom income that results from an inflation adjustment to the principal? Is this inflation adjustment even visible to California?
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