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Financial Issues This forum is for discussing any of the financial issues involved in your divorce.

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  #41 (permalink)  
Old 09-11-2013, 10:25 AM
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Quote:
Originally Posted by involveddad75 View Post
Mess I think you took my post wrong..
I think I did put the wrong emphasis on your intent, but not your reasoning.

You want to argue with the tax law regarding a legal suit to reduce cs payments by an access parent. This is wrong for the reasons I stated.

An analogy, you file a suit with the cell phone company because you believe you are being overcharged. You then want to go to tax court and argue that you may deduct the legal fees as though you were seeking unpaid wages from the cell company.

Seeking a reduction in payment is NOT the same as seeking payment of what you are owed. This is explicitly covered in CRA explanatory pages.

You may seek a deduction for legal fees that are incurred to receive wages that are owed, payments from clients for professional services, or unpaid child support payments. This all stems from the same principle.
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  #42 (permalink)  
Old 09-11-2013, 10:29 AM
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Then why is my ex allowed to claim 40% of her legal fees regarding the case.
I always paid child support, and after trial it came out that I had over paid.
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  #43 (permalink)  
Old 08-21-2014, 11:39 AM
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Does anyone have experience of being a net payor in a shared custody regime and having been denied their deduction for legal fees? If this is true is it because both parents are technically "payors" of child support and therefore neither can claim legal fees?
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  #44 (permalink)  
Old 08-21-2014, 12:03 PM
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Originally Posted by now i see the moon View Post
Does anyone have experience of being a net payor in a shared custody regime and having been denied their deduction for legal fees? If this is true is it because both parents are technically "payors" of child support and therefore neither can claim legal fees?
I pay an offset amount to my ex.

I claimed 20% of all my legal fees (the portion related to child support) and the CRA accepted them.

Claimed in tax years (2011, 2012, 2013)
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  #45 (permalink)  
Old 08-21-2014, 12:33 PM
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Thanks FB_ for the information. That's reassuring. Did they ask you for receipts, or official documentation (divorce judgement etc), or was it just an acceptance without question?
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  #46 (permalink)  
Old 08-21-2014, 12:52 PM
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Originally Posted by now i see the moon View Post
Thanks FB_ for the information. That's reassuring. Did they ask you for receipts, or official documentation (divorce judgement etc), or was it just an acceptance without question?
Well the whole thing is kind of a process. I had to get them to recognize me as divorced/separated first. Then I had to file a T1 adj for 2011 and 2012 and got the money this year.

The whole process of proving I was separated/divorced took almost 2 years with lots of documentation, several appeals but in the end it it all as expected.

You can review the 17 page thread here

http://www.ottawadivorce.com/forum/f...parated-13862/
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  #47 (permalink)  
Old 08-22-2014, 02:31 PM
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Quote:
Does anyone have experience of being a net payor in a shared custody regime and having been denied their deduction for legal fees? If this is true is it because both parents are technically "payors" of child support and therefore neither can claim legal fees?
What some people do is spell out that each side is receiving child support.

Ie, Bob pays Betty $500 per month for the children Sam and Sally, and Betty pays Bob $700 per month for the children Sam and Sally, with a net payment of $200 per month.

Due to the rules surrounding claiming children as equivalent to spouse, the above is rephrased at some points to read:
Bob pays Betty $500 per month for Sam, and Betty pays Bob $700 per month for Sally, for a net payment of $200 - and each parent claims the child they receive support for, and claim legal fees to obtain the support.

How often this is accepted because CRA approves of the practice, and how often simply because The Gods Are Merciful, is an unknown.
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  #48 (permalink)  
Old 08-24-2014, 11:37 AM
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Hi Orleans Lawyer,

In your examples, only the second of them would be acceptable to CRA for purposes of claiming legal fees for child support, right?
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  #49 (permalink)  
Old 09-06-2014, 06:24 PM
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Non custodial parent paid x in section 7 expenses to third parties directly . A part of legal proceedings non custodial parent establishes that custodial parent owes him an amount being her share of the section 7 expenses he paid .

Can non custodial parent deduct legal fees incurred to receive the mother's share of the add on ( section 7 ) costs?
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  #50 (permalink)  
Old 09-06-2014, 06:26 PM
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To clarify last para above should read deduct on income tax return
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