Is DPSP taxable in California? Federally, DPSP is treated like pension, so no tax until withdrawal.
However, if DPSP is converted into RRSP prior to leaving Canada, is the capital gain realized taxable by California? Alhtough Cali supposed to tax this since this is realized before becoming Cali resident, it does affect the tax rate calculation.
Thanks.
DPSP taxable in California?
Moderator: Mark T Serbinski CA CPA
RRSP interanl income is only taxable in cali when you actually live there, not before or after.
Cali taxes RRSPs tealy on intrnal income. Thiswhen you start withdrrawing, the portion on whch you have already paid cali tax, is no longer taxable in cali.
For fed, the entire amount of any withdrawal is taxable (presuming you elect to defer taxation). None of the DPSP is non-taxable in the end.
Cali taxes RRSPs tealy on intrnal income. Thiswhen you start withdrrawing, the portion on whch you have already paid cali tax, is no longer taxable in cali.
For fed, the entire amount of any withdrawal is taxable (presuming you elect to defer taxation). None of the DPSP is non-taxable in the end.
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