Reporting RRSP "internal earning" to FTB

calvin_g · Post by **calvin_g** » Mon Jul 30, 2007 5:10 pm

My RRSP was "locked" for year 2006 -- that means no contribution, no withdrawal, no fund switching. Am I correct my gain/loss is the difference between the first and last day of yr 2006?

Thanks!

nelsona · Post by **nelsona** » Tue Jul 31, 2007 5:11 am

No. If you did not sell any investments, there was no capital gains, regardleess of the change in value. This is just like any stock you hold: you don't have any gain/loss until you actually sell.

Now, if you received internal distributions, which can be interst, dividends or capital gains,then these are consdered income andmust be reported in Cal. The fund usually describes what the distribution was, somewhere; (ie. $1.22 /unit distribution: 0,20 interst, .25 dividend, 0.77 cap gans.)

nelsona · Post by **nelsona** » Tue Jul 31, 2007 1:42 pm

What you have to do for FTB purposes, is to remove the "fence" around your RRSPs and treat them like ordicary investment accounts. In such accounts one normally doesn't care, for tax purposes, about the daily value. One cares only about distributions or dividends, and capital gains arising from sales of stock/units during the year.

Anyone with an non-RRSP investment account does this every year for IRS/FTB/CRA.