Category: Gelman Blog Posts

In years following the year of separation (i.e., where the parties live separate and apart for the entire year), the parent with whom a child lives may claim the AED. Where an AED claim is made, especially for the first time, the tax authorities may well request some documentation to show that the person claiming …

Generally, a person who pays child support is not allowed to claim an eligible dependant amount in respect of that child. However, in the year the parents separate, the parent who pays support has an option. He or she may claim the credit (assuming that no other person is claiming the AED for that child), …

Following a divorce, a single parent who lives with and supports his or her child may claim what is known as an “amount for an eligible dependant”, or AED, sometimes referred to as the single parent exemption. The rules respecting eligibility for the credit can be confusing and sometimes even arbitrary; it is important to …

Generally, after October 10, 2002, legal fees paid to obtain spousal support or an increase in spousal support amounts, to make child support nontaxable, or to collect late support payments may be deducted by the person who paid the fees. Similarly, legal fees paid to enforce child support orders are deductible. Finally, where a person …

Most taxpayers are aware that where monies are taken out of a registered retirement savings plan (RRSP) or a registered retirement income fund (RRIF), tax must be paid on those withdrawals. However, our tax system provides for an exception to this rule in the case of a marriage breakdown. Where former spouses are no longer …

Our tax system generally imposes tax consequences where property is transferred between persons related to one another (referred to in tax terminology as non-arm’s length parties) for any amount other than the fair market value of that property. However, different rules apply where property transfers take place as a result of marriage breakdown. Generally, there …

The general rule is that for an amount to qualify as a support amount it must be paid directly to the recipient, and the recipient must have control over how the funds are spent. However, following a separation, it often happens that the person who was, during the marriage, responsible for the payment of certain …

A child support payment is any support payment which would be deductible under the rules set out above that is not identified in the agreement or order under which it is made as being solely for the support of a spouse or common-law partner or former spouse or common-law partner or the parent of the …

Child support payments are not taxable to the recipient nor deductible to the payer, whereas support payments for the benefit of the recipient will continue to be taxable to the recipient and deductible to the payer so long as they meet the criteria set out above. There is a general presumption that payments are child …

Where marriage breakdown occurs, including the breakdown of a common-law relationship or a common-law partnership, a payment constitutes a support amount and is deductible if all the following criteria are met: the amount must be paid under an order of a competent tribunal or under a written agreement; however, please note that a court order …