Hi
if RRSP account receives dividents/interest and there is no distribution out from RRSP account, is divident taxable in California?
For federal , there is a form we can fill to postpose taxes on RRSPs until distributions. but how about califonia state tax?
Thanks
dividents within RRSP , taxable in California or not?
Moderator: Mark T Serbinski CA CPA
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- Posts: 73
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While I'm loathe to look into state items, I think a search of the california FTB site for RRSP will show it.
Basically, the RRSP account is treated just like any other investment account that you maight haver, interst, dividends, and cap gains are taxable in the year they occur.
Basically, the RRSP account is treated just like any other investment account that you maight haver, interst, dividends, and cap gains are taxable in the year they occur.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing
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below is the link to california tax board news letter talking about RRSP :
http://www.ftb.ca.gov/professionals/tax ... 3/0506.pdf
In second page, it is saying that RRSP is treated as a saving account. for saving account, we don't have capital gains, all interest are regular income.
Now I am confused that you said treat RRPSs as capital gains and this says treat as saving account. IF My original contributions were $1000 and in 2006 There was $100 dividents paid and it is within RRSP , NO distribution, how do I have to report this $100?
Thanks
The link says:
After reviewing the characteristics of a
RRSP, we have revised our internal
procedures and will now treat a RRSP
like a savings account, not a functional
equivalent of an Individual Retirement
Arrangement. As a result, California
resident taxpayers’ original
contributions, made while a Canadian
resident, are treated as a capital
investment in the RRSP. California
residents are required to include the
earnings from their RRSP in their
California taxable income in the year
earned
http://www.ftb.ca.gov/professionals/tax ... 3/0506.pdf
In second page, it is saying that RRSP is treated as a saving account. for saving account, we don't have capital gains, all interest are regular income.
Now I am confused that you said treat RRPSs as capital gains and this says treat as saving account. IF My original contributions were $1000 and in 2006 There was $100 dividents paid and it is within RRSP , NO distribution, how do I have to report this $100?
Thanks
The link says:
After reviewing the characteristics of a
RRSP, we have revised our internal
procedures and will now treat a RRSP
like a savings account, not a functional
equivalent of an Individual Retirement
Arrangement. As a result, California
resident taxpayers’ original
contributions, made while a Canadian
resident, are treated as a capital
investment in the RRSP. California
residents are required to include the
earnings from their RRSP in their
California taxable income in the year
earned
CA made a poor choice of words when they used "savings account". What they are saying is (see Nelson's posting) that an RRSP is NOT treated like an IRA, i.e, where only the withdrawals are taxable.
An RRSP is treated like any investment account for CA purposes, i.e. the earnings (interest or dividends) and gains are taxable on an annual basis.
An RRSP is treated like any investment account for CA purposes, i.e. the earnings (interest or dividends) and gains are taxable on an annual basis.