Topic: Capital Gains
I own a home in Ontario. I also inherited a cottage in Ontario. what are the capital gains implications for the sale of the cottage? Thanks.
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Topic: Taxation
How will supplementary income through a home based business or as an independent contractor (real estate) help relieve tax pressure for the retired?
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Topic: Pension Income Splitting
I am a retired public servant in receipt of a pension, I also do private contract work for the federal government, my wife is a retired school teacher but with a small annual pension, last year we did not use income splitting on our tax return. Would it be to our advantage to re-submit and will it effect anything once we start to get our CPP this year?
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Topic: Long Term Care
My mother and father live on CPP and a small disability income (my father's). My father is terminally ill, but still living at home. Their small residence is mortgage free ($120,000). What happens to their equity in their home once one, or both of them have to move to a long term care facility? How can they have control over the equity in their home yet still receive government assistance?
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Topic: Out of Country Retirement
I am 54 and my wife age 49, as the oldest child in a foreign country, is expected to care for her parents. We plan to move out of Canada in September 2009. We have a daughter finishing university, paid off our mortgage on our downtown home that is appraised at about $350K, have $100K in RRSP and another $15K in cash.
We would like to have an income in our 'retirement'. Should I sell the house and invest the money in a vehicle that will provide monthly income or rent it and hope the property market improves? What about the RRSP money? How do we keep our money in Canada and keep the income tax to the least amount?
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Topic: Pension Income Splitting
My wife and I, are currently withdrawing from our RRIF savings accounts. My wife is 60 years old an I am 65 years of age.
I was told that my wife's RRIF can not be split because she is under 65 years old. This means that we are not able to combine our RRIF incomes and split them in half.
Could I still split 50% my RRIF income with wife to take advantage of the reduced income tax for both of us because her income is less than mine.
Thank you very much for your help.
sincerely,
Robert
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Topic: Estate Planning
I have a question and I wondered if you could shed some light on it for me.My mother in law and father in law jointly own their own home but my father in law now resides in a long term care facility while my mother in law lives in the house. My father in law is not able to deal with his affairs. We are concerned that if my mother in law passes away before he does, he will have to pay a capital gains tax on the house because it is not currently his principal residence. Can you she any light on this for us. We are a little confused.
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Topic: Pension Income Splitting
I'm 52 years of age and I support my wife who does not work. Medical problems ended my career early. My sources of income are all different pensions including CPP LTD, RCMP Pension and GWL LTD pension. My total income Line:150 = $44,000. My net income without the new Pension Income Splitting is $42,000. I have two disabled adult sons so I utilize the Disability Amount Transfered From A Dependent X 2 and the combined amount ($13,422 - Federally) and ($23,574 - Provincially) assists in reducing my tax payable. I pay no provincial tax this year, but I owe $1238 to Ottawa. Only the RCMP pension withholds tax - the other two do not.
My question to you is this, Would Pension Income Splitting be advantageous in my fiscal situation as I've outlined here? Keep in mind that the total amount of income tax withheld by the RCMP pension plan was $3080.
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Topic: Capital Gains
I have read your information page about capital gains, but I need some clarification on how the value of the stock is calculated. My husband will retire in July 08 from CP Rail. He has purchased stock by way of the company stock purchase program on a bi-weekly basis for a few years. When he first signed up for the program, the stock was work approxmately $ 30.00 per share. It is now hovering at near $ 70.00. In January 09, he wants to sell some of that stock and pay down our mortage. How will the capital gains be calculated if the purchase price of the stock varied at each transaction. Can you specify that you wish to sell your most expensive stock first.
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Topic: Pension Income Splitting
If one splits pension income on tax form can this amount of money actually be permanently transferred to spouse without invoking the "attribution' rules?
The spouse could then invest this money and be responsible for any income on it in future!
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Topic: Pension IncomeSpliting
I have a question regarding the new seniors income splitting tax rules. If the pension funds are from a RPP, company pension, and both the pension receiver and spouse are under age 65, the pension can be split up to a 50-50 split but can both spouses use the $2000 pension income credit. I have seen a lot of conflicting opinions on this issue.
Thanks!
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Topic: Pension Income Splitting
For the past 10 years I have been required to pay income tax installments over and above the amounts witheld at source by my pension administrator. If I split my income with my wife this year 50-50, will I still be required to pay quarterly installments?
Also, how is the income witheld at source allocated? Are my wife and I each credited with 50%?
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Topic: Tax Free Savings Account
I received some info on TFSA from fran@canretire.com and would rely like more details on this. I am 58, semi retired and this TFSA
sounds to good to be true. Any way to access this info on TFSA, or a more detailed response from you.
Thanks
Don
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Topic: Estate Planning
A friend is expected to die soon and will be leaving me some shares in a Canadian bank.They will probably be worth about $170.000.00.How will this be handled upon his death? Do they have to be cashed in and can I be expected to pay tax on this money?I am 75.
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Topic: Pension Income Splitting
I looked at your site and found it very useful. I have a question which I hope you can answer. I am elegible to retire in 2009. I will receive an annual pension in the order of approximately $90,000. My wife an I are currently both 51 years old and reside in Ontario. My wife has not worked since 1985 and does not receive any pension or other income. Neither of us has any RRSPs or other retirement income. Would we be eligible for the income splitting you describe on your site? Also, would we would be able to split the pension income attributing 50% of the total annual income to each of us and thereby take advantage of the significant tax reduction?
Thank You
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Topic: Pension Income Splitting
My husband will turn 55, retire and collect company pension in December 08. Will we be eligible for pension income splitting for 2009, or does he have to be 65? thanks.
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Topic: Pension Income Splitting
I just read a document that said you are not allowed to have any other income to take advantage of pension income splitting.
Is this true?
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Topic: Pension Income Splitting
I am a 57 year old retiree, how will this new law affect me? I am now receiving a corporate pension, can I split this with my wife?
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Topic: Pension Income Splitting
We are both retired and all of our income/revenues qualify for income splitting This is my question. Our total individual revenues are probably within $2,000-$3,000 apart. Would we still qualify for income splitting? I look forward to hearing from you. Thanks.
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Topic: Taxation
My husband and I are discussing the possibility of retiring to Canada from the U.S. Can you tell me how retirees from other countries are taxed in order to be eligible for the national health care coverage that Canadian nationals benefit from? We will have a full pension plus additional income from mutual fund investments. Thank you.
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Topic: Pension Income Splitting
Assuming a pensioner had a sufficient amount to transfer, it would appear that the pensioner could transfer an amount to one's spouse that could place the spouse's net income above the base amount of $63,511.00 triggering the social benefits repayment (claw back). One might do this to maximize tax savings up to a point - as long as both marginal rates remain identical. Otherwise, as the marginal rate of the spouse exceeds that of the pensioner, the claw back would become quite onerous.
I have not seen any guidance on this so my question therefore is: Should the pensioner restrict the transfer amount so that the spouse's base amount of $63,511.00 is not exceeded, triggering a claw back, and if a claw back amount was triggered would the spouse's OAS payments for the ensuing year be reduced by the claw back?
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Topic: Capital Gains
My Mother, aged 88, owns a condo and a cottage, both near Perth, Ontario. She is planning on selling the cottage this spring. If she puts her condo in my name (my wife and I own no property) and then sells the cottage, would this help her avoid high taxes (50% of the capital gains?) We are obviously trying to get her the best deal, as she has been a widow since May of 2007. Thanks.
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Topic: Pension Income Splitting
My husband is 56 years old and has been retired for a few years now. I am still full time employed and am 54 years old.
Are we eligible for pension income splitting?
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Topic: Pension Income Splitting
Does income splitting apply to my company pension as well as income from my CPP (Canada Pension Plan)?
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Topic: Pension Income Splitting
I think I have a good understanding on pension splitting. I have enough qualifying income to transfer to my wife to raise her income above $37,178. If I do, we both pay federal tax at 22%. If I transfer only enough to $37,178, she pays at 15% and I pay at 22% but on a reduced amount. Does this sound correct or am I missing something. On the Provincial side, my wife does not pay the health tax and I pay $600. When we do the split, we end up paying a total of $810. However, by splitting as I have outlined. we pay about $2,200. less tax than we normally would. I have a further question regarding the split on Income Tax deducted formula on form T1032E but this can wait for another time. Thank you for your time.
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Topic: Pension Income Splitting
Thank you so much for providing this web-site. My questions is regarding the new Split-Pension Income that Rev Can allows me to split my pension income with my wife.
My wife's pension income is 1600 while mine is $15,891. I have my own made-up income tax program and I try giving my wife amounts from 2000, 3000 up to 7900 and my program indicates that it's most in our favor if I choose to give her 5800. However, I downloaded Taxman and it also indicates I should give her $5800 for a maximum refund.
I was claiming the medical expenses but I decided it would be better if my wife did.
However, when I split 5800 to her, she ends up with a higher net income than me so I'm not sure anymore who should claim the medical expense. My total income was $27000 before the splitting and her's was about $14900. Is there a formula that I can use to be sure I'm getting the maximum benefit from this Split-Pension Amount.
How do I know which amount to choose?
Thank you
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Topic: Pension Income Splitting
What is pension income splitting?
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Topic: Pension Income Splitting
My husband is receiving Nortel Pension (he is also still working at the present time with another high tech, hence, he is in 50% tax bracket) I wonder if he could split his Nortel Pension with me (I am not making much money).
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Topic: Pension Income Splitting
I receive four pensions (OAS, CPP,Military and Air Canada pensions) does all of these pensions qualify for income splitting under the new rules?.....Dave
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Topic: Pension Income Splitting
First, I thank you for a very informative session yesterday. I have one question...
If I transfer $20000 of eligible pension (of which I have already paid taxes) income to my wife then will my tax payable be reduced according to my new rate and my wife's taxable income be now increased and
would she now have to pay taxes according to her new rate? Is this how the taxes are allocated in the same proportion as the pension income is allocated?Is the allocation of tax distribution (overpayment by me and money owing by my wife) done at tax return time?
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Topic: Pension Income Splitting
Do I qualify to split my pension income?
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Topic: Pension Income Splitting
What forms do I need to split my pension income?
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Topic: Pension Income Splitting
What is "Eligible Pension Income"?
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Topic: Pension Income Splitting
Who will claim the tax withheld at source from the eligible pension income?
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Topic: Pension Income Splitting
Will pension income splitting affect the pension income amount?
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Topic: Pension Income Splitting
Does pension splitting affect my GST/HST credit?
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Topic: Pension Income Splitting
If pensioners intend to make this election when filing their 2007 returns, can they reduce their instalment payments?
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Topic: Pension Income Splitting
If pensioners intend to split pension income when filing their returns, can they ask for a reduction of tax being withheld from the eligible pension income during the year?
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Topic: Pension Income Splitting
Should I choose to split my pension, it necessary to contact the payer of the pension?
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Topic: RRSP
Is it a good idea to over-contribute to my RRSP?
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Topic: RRSP
What are the benefits of having an RRSP?
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Topic: Estate Planning
What happens to my property if I die without a will?
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For over 28 years, Fred has been helping retirees get the most from the registered and no-registered retirement savings. He is one of Canada's top Retirement Income Option Specialists.
