RRSP Tax Calculation For CA
Moderator: Mark T Serbinski CA CPA
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- Posts: 16
- Joined: Mon Apr 14, 2008 12:30 am
Nelson: Thanks for the great information in this thread (and others) so far, but I was wondering if I could ask for a couple extra clarifications:
1. I've been reporting the reinvested RRSP dividends as California income throughout my residency. This year I closed my RRSP, so I first report any dividends that occurred before the distribution as California income, then report the distribution amount, minus all dividends previously reported, minus the value of the RRSP at the time of becoming a resident. Correct?
2. I report the above adjusted distribution amount as capital gains on schedule D(540), and can therefore apply carryover capital losses to offset the amount?
3. This is the first year I have federal foreign income/tax credit and simultaneously the first year I'm hit by AMT. I need to elect whether to use the Simplified AMT Foreign Tax Credit Limitation. It doesn't seem to make any difference to my taxes for this year but the election is irrevocable, yet there's very little information on its impact. What should I take into consideration when making this decision?
Thanks in advance!
1. I've been reporting the reinvested RRSP dividends as California income throughout my residency. This year I closed my RRSP, so I first report any dividends that occurred before the distribution as California income, then report the distribution amount, minus all dividends previously reported, minus the value of the RRSP at the time of becoming a resident. Correct?
2. I report the above adjusted distribution amount as capital gains on schedule D(540), and can therefore apply carryover capital losses to offset the amount?
3. This is the first year I have federal foreign income/tax credit and simultaneously the first year I'm hit by AMT. I need to elect whether to use the Simplified AMT Foreign Tax Credit Limitation. It doesn't seem to make any difference to my taxes for this year but the election is irrevocable, yet there's very little information on its impact. What should I take into consideration when making this decision?
Thanks in advance!
1. Not quite. For cali, you report the dividends paid within the \rrsp, and the gains/losses triggered by the sale of the RRSP investments, which may or may not have anything to do with arrival value. You sold ABC when you collapsed the RRSP, you need to determine what gain/loss you had on that sale, and so on.
2. If it is corrct gain or loss
3. Since you won't have any future need to worry about, just choose which ever one yierlds less tax, and use siomplified if it is equal.
2. If it is corrct gain or loss
3. Since you won't have any future need to worry about, just choose which ever one yierlds less tax, and use siomplified if it is equal.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing