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Old 08-29-2017, 01:32 PM
Hova Hova is offline
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Default Carrying Charges And Interest Expense

Hi All - I did a search but didn't see much on this topic. My ex's lawyer has sent over a DivorceMate calculation that includes an amount for "Carrying Charges And Interest Expense" in the amount of $3,286.00. The net result of this is that it decreases her income by that amount for the purpose of recalculating child support (i.e 75K on line 150 is now $71,714) .

Now on the CRA website it states: Line 221 Carrying Charges and Expenses

Legal fees you incurred relating to support payments that your current or former spouse or common-law partner, or the natural parent of your child, will have to pay to you. You can also deduct your expenses in the following situations:
  • You collected late support payments.
  • You established the amount of support payments from your current or former spouse or common-law partner.
  • You established the amount of support payments from the natural parent of your child (who is not your current or former spouse or common-law partner) where the support is payable under the terms of an order.
  • You sought to obtain an increase in support payments.

So, none of the above is remotely true. It takes her lawyer probably 15 minutes to input the data to recalc in DivorceMate but this seems like she's telling the CRA it took 8-9 hours of legal time to recalc CS. I'm assuming she will try to do this every year to purposely lower her income and recoup the tax benefit of this as well.

Any thoughts? Is this really legit? Should I report this to the CRA?
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