Total Distribution is the actual total amount of the RRSP distribution.
Taxable Part of Distribution is the taxable amount of the RRSP distribution using Pro-Rata rule depending on your cost base calculation:
- For Canadian citizens who are U.S. residents (but not U.S. Citizens), the amount of contribution including interest, dividends and any realized capital gains up to the day a person becomes a U.S. tax resident is considered principal (cost basis) for U.S. tax reporting purposes. The cost basis does not include any unrealized capital gain.
- For a U.S. citizen who is also a tax resident of Canada, your principal contribution to the RRSP will be your cost basis. Further, if the contributions were deducted on your U.S. Form 1040 income tax return, then your deduction does not increase cost basis.
- Cost Basis Defined: Cost Basis is what the U.S. considers the original cost of property or an asset, adjusted for depreciation.
- Reference: https://akifcpa.com/how-to-treat-resp-and-rrsp-canada-distributions-on-u-s-income-tax-returns/
