RSM Canada LLP

TOSI and the estate planning – pension splitting

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The pension splitting exception will allow a spouse who is 65 years of age to split income with his or her spouse or common law partner if the split income would be an excluded amount of the spouse who is 65 years old. These deeming provisions provide an opportunity to split income with spouses if certain conditions are met. The following example shows how the pension splitting exception would apply:….

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Canada Revenue Agency, Estate Planning, Tax Issues

Trust Claiming a Capital Gain Reserve

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The Canada Revenue Agency (CRA) answered several questions regarding a scenario in which a trust claims a capital gains reserve. When a trust claims a capital gains reserve, and the amount of the reserve is included in income in the subsequent year and flows through the trust to a beneficiary, does the gain retain all of its attributes? The reserve amount which the trust claims is included in calculating its capital….

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Canada Revenue Agency, Estate Planning, Executors, Tax Issues

Clawback of Old Age Security

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The Canada Revenue Agency (CRA) was reminded by a taxpayer recipient of the Old Age Security pension (OAS) about a perceived lack of fairness when required to include the dividends received at a grossed-up amount when calculating net income rather than only including the actual amount of dividends received. The taxpayer felt this was unfair because their net income was used to calculate the reduction his or her OAS. In….

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Canada Revenue Agency, Tax Issues

Estate income entitlement

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With the filing deadline for trust tax returns fast approaching, it is a good idea to take a look at some recent tax news which may be of some interest to executors. The Canada Revenue Agency (CRA) was recently asked their view on whether a beneficiary of an estate has the right to income of an estate after the estate has passed the end of the “executor’s year” such that….

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Canada Revenue Agency, Estate Administration, Estate Planning, Executors, Tax Issues, Wills
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