Justin to take away income splitting IF ...................................

[valve37]

New LPC radio ads

We’re setting the record straight on the Conservative income splitting scheme.

Listen and share →

http://goo.gl/ycEA4r

Tuff for JT to take it away when he's not in power and would be political suicide if and when he were for it becomes effective with the 2014 tax year!

[pierrelebel]

" will give you enough  pot so you will not worry about  it."

[davca.8je2v]

tell you what peirre--you go to your accountant and check--then come back and say sorry !

EVERYBODY that claims pension income is eligible for the COMPLETE $2,000 deduction--so when you TRANSFER pension income to them UNLESS they are also on a pension they AUTOMATICALLY get that $2,000 deduction--so YES it is DOUBLE--if you are say 45 and on a military pension you are eligible to transfer up to 50% of that pension income to your spouse and your BOTH then claim the $2,000 PENSION INCOME DEDUCTION!!

I suggest you get a better accountant if they are not taking advantage of EVERY deduction available---I do 1,000 tax returns a year while you do ZERO--including corporate taxes..  Your accountant should be available tomorrow for your answer

[davca.8je2v]

You (the pensioner) will be able to claim whichever amount is less: $2,000 or the amount of your eligible pension income, after excluding amounts allocated to your spouse or common-law partner (the pension transferee).

Your spouse or common-law partner (the pension transferee) will be able to claim whichever amount is less: $2,000 or the amount of his or her pension income that is eligible for the pension income amount (based on the calculation for line 314 on the federal worksheet), including the allocated pension income that is eligible for the pension income amount.
--which means YOU get the $2,000 deduction and as long as you transfer at LEAST $2,000 to your spouse they get the same $2,000 amount---so unless your pension is less than $4,000 a year you are not using your tax benefits correctly if you transfer anything less than the $2,000 they would be entitled to as a deduction.

[disisus]

This is what I found:

The person doing the pension splitting must be 65 or over.

Pension Splitting

As of January 1, 2007 individuals who are 65 years of age or older can allocate for tax purposes up to a maximum of 50% of the annual income received from a lifetime annuity, registered pension plan, RRSP annuity, registered retirement income fund (RRIF) or deferred profit sharing plan annuity to a spouse (or common-law partner or same-sex partner). Although the actual income is still received by the individual, the splitting for tax purposes is done via the tax return. The receiving spouse is not required to be 65 years of age or older to receive an allocation, and the amount allocated can be changed each year for the benefit of the couple. This is great news for senior couples.

For those individuals under age 65, pension splitting only applies to those who receive lifetime annuity payments from a registered pension plan. RRIF income cannot be split under age 65.

Canada Pension Plan splitting

Similar to pension splitting, couples can split their CPP retirement benefits. The only reason you would do this is if the spouse with the higher CPP is in a higher tax bracket than the lower CPP earner. Unlike pension splitting, both spouses must be over the age of 60 and both must be collecting CPP. Also, the split between spouses must be 50-50 and no other fashion. For example, if the higher income spouse earns $700 per month and the other spouse earns $300 per month, CPP allows each spouse to take $500 per month ($700 plus $300 divided by 2).

Although the government is tough on income splitting, there are strategies for Canadians to lower the tax bite. Next week, we will look at other income splitting strategies beyond just retirement.

http://retirehappy.ca/income-splitting-strategies-in/

[disisus]

I also checked out the Revenue Canada form that Pierre linked to earlier. It says 65 or older as well. Unfortunately this doesn't help me. My husband is retired but he's not even 60.

[disisus]

Getting back on topic.

Justin isn't proposing that income splitting for seniors is reversed. He's said quite clearly he agrees with that. It's the recent income splitting that the Conservatives introduced that would give people like him and Stephen Harper money back that he disagrees with.

[pierrelebel]

Good morning Les

I spent some time this morning with agents of CRA.  Let me repeat:

As stated earlier, income splitting is relatively easy. The tax credit on pension income is complex.

For detailed information, please refer to the form provided by Revenue Canada:

http://www.cra-arc.gc.ca/E/pbg/tf/t1032/t1032-13e.pdf

As always when it comes to tax questions I strongly recommend one consults a competent tax accountant familiar with your personal circumstances.

When I mentioned that an experienced tax preparer suggested on the internet: "you should transfer at least $2,000 of his pension to your income (there is a special form you fill in) The first $2,000 of pension money is "tax free". so he will get the $2,000 deduction and so will you. Won't make you rich but will save you at least $400 in income tax " both agents explained they could not help me prepare my tax return but suggested I find someone who understood pension income splitting.  One problem to keep in mind is that the amount transferred becomes taxable to the spouse with at the higher tax rate (in the example given) while the credit is only valued at the lower tax rate.

One more time: as always when it comes to tax questions I strongly recommend one consults a competent tax accountant familiar with your personal circumstances.

[disisus]

Good evening Pierre.

Thanks for the info. I did look up the form you linked to and also did some further research. It doesn't appear that the pension income splitting or the new income splitting applies to me and my retired husband but I will ask my accountant.

As a coincidence, I just got a notice of re-assessment dating back several years in regards to capital gains. I haven't seen the details yet but I'll go over it with my accountant as well.

This is an interesting article on how the CRA is going after people who make too much money in their TFSA. It sounds like the rules are a little vague about people buying and selling securities in a TFSA and whether they qualify as a business or not. It might go to court.

http://business.financialpost.com/2014/12/02/canadians-with-too-many-wins-in-their-tfsa-being-target...

Les

[davca.8je2v]

Do you qualify to split your pension income?

You (the pensioner) and your spouse or common-law partner (the pension transferee) can elect to split your eligible pension income received in the year if you meet all the following conditions:

• you are married or in a common-law partnership with each other in the year and were not, because of a breakdown in your marriage or common-law partnership, living separate and apart from each other at the end of the year and for a period of 90 days or more beginning in the year (see the note below); and
• you were both residents of Canada on December 31 of the year; or
  • if deceased in the year, resident in Canada on the date of death; or
  • if bankrupt in the year, resident in Canada on December 31 of the year in which the tax year (pre- or post-bankruptcy) ends.
• you received pension income in the year that qualifies for the pension income amount

NOWHERE does it say you have to be 65 ----I have been doing this for years and do many many many for retired military from age 40 and up.

[davca.8je2v]

• You received pension income in the tax year that qualifies for the pension income amount (see line 314 in the General Income Tax and
Benefit Guide) or you were 65 years of age or older and received certain qualifying amounts distributed from a retirement compensation
arrangement (Box 17 of your T4A-RCA slips, Statement of Distributions from a Retirement Compensation Arrangement (RCA)).---right from the ACTUAL form---you received pension OR you were over 65 and getting money from a RIF

[davca.8je2v]

correct and this will hurt many families with stay at home or even P/T working parents.

[davca.8je2v]

Please talk to an accountant. Your pension CAN and should be split ! you do NOT have to be 65 !

they can adjust it back for you also for the years you did not split it. There are very FEW cases where splitting a pension is not beneficial.

Sorry but pierre is 100% wrong on this as IF you split the pension both yourself and the spouse are entitled to up to $2,000 deduction for pension income.

Not sure why he wants to try and beat around the bush. Pension splitting is a very easy thing to do and if your accountant is not doing it, I suggest you get a better accountant.

Please report back and explain WHY your account says he does not split your pension. I would be very interested to know the reasoning

[davca.8je2v]

Tax tip

You may be able to transfer all or part of your pension income amount to your spouse or common-law partner or to claim all or part of his or her pension income amount. See line 326 for more information.

Can you claim the transfer of certain amounts from your spouse or common-law partner?

Answer the following questions to find out if certain amounts from your spouse or common-law partner can be transferred to you.

You may be able to claim all or part of the following amounts for which your spouse or common-law partner qualifies, if he or she did not need the whole amount to reduce his or her federal tax to zero:

• the age amount (line 301) if your spouse or common-law partner was 65 years of age or older;
• the amount for children born in 1996 or later (line 367);
• the pension income amount (line 314);
• the disability amount (for self) (line 316); and
• tuition, education, and textbook amounts (line 323) for 2013 that your spouse or common-law partner designates to you. The maximum amount that your spouse or common-law partner can transfer is $5,000 minus the amounts that he or she uses even if there is still an unused part

Which pension or annuity income qualifies for the pension income amount?

Answer the following questions to find out if you can claim the pension income amount.

You may be able to claim up to $2,000 if you reported:

• eligible annuity and/or pension income on line 115  of your return;
• eligible pension income on line 116  of your return; or
• annuity payments on line 129 of your return (box 16 of your T4RSP, Statement of RRSP Income slip), only if you were 65 years of age or older on December 31, 2013, or you received the payments because of the death of your spouse or common-law partner.

For a more detailed list of eligible pension and annuity income, see the Eligible Pension and Annuity Income (less than 65 years of age) chart or the Eligible Pension and Annuity Income (65 years of age or older) chart.

[valve37]

OTTAWA -- Liberal Mittens, overwhelmed by generous support from Canadians, today issued the following statement of gratitude:

January 20, 2015

“I am so touched by your generosity -- its making me blush.”

“THANK YOU, friend! And, to learn just how much we raised (hint: it’s over 5.6M!), please stay tuned for our official results at the end of this month.”

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[valve37]

Liberal leader Justin Trudeau says Southwestern Ontario must move away from manufacturing

What! We already did due to 10 years of Liberal brand.

http://www.lfpress.com/2015/01/20/liberal-leader-justin-trudeau-says-southwestern-ontario-must-move-...

Read the comments to the article, priceless! Here's a couple of classics: 

"Hey JT go back where you came from! We are not interested in some guy running this country who's only qualifications are My Daady was PM so I want to be just like Daddy!"

"...JT would just prefer we send our lads into combat with daisies in their rifle barrels - and lots of hugs and lollypops for the misunderstood Muslim extremists."