Line 232 of Income Tax Return - Deducting Legal Fees

[#1StepMom]

I looked up information regarding deductible legal fees (line 232) and was ecstatic when I read:

You can claim a deduction for legal fees on line 232 in any of 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; and
• you sought to make child support non-taxable.

But then, all joy went out the window when at the bottom of the page, I read:

Note
If you pay support, you cannot claim legal costs incurred to establish, negotiate, or contest the amount of support payments.

Is it me, or does it always seem that non-custodial parents (usually support-paying Fathers) get screwed in every possible way?

I do understand that the government does not want to see legal fees deducted for yearly support adjustments, but maybe a once-every-5-years rule or something would be nice.... especially if the custodial support-receiving parents get to deduct legal fees every year if they wish to drag support adjustments to court. Something just doesn't seem right... yet again.

The Revenue Canada page regarding legal fee deductions is: Line 232 - Legal fees

[Darlynn]

Hi,

Does anyone know if this just applies to this years income tax or can u claim it for a different year?

Thanks

[dinkyface]

CRA's rationale is
- Legal fees for establishing/enforcing CS are deductible because the support $ is the pre-determined right of the child (according to divorce act and family law reform act).
- legal fees for establishing spousal support are deductible because this $ is pre-determined right of the spouse under the divorce act.

BUT, by the same token, legal fees for establishing reasonable access/involvement of NCP should be deductible because the child's RIGHT TO BOTH PARENTS should be pre-determined.

Anyone wanna bet on whether that will ever happen?

[dadtotheend]

Originally Posted by Darlynn

Hi,

Does anyone know if this just applies to this years income tax or can u claim it for a different year?

Thanks

You claim legal fees paid in any particular year paid as long as they meet the criteria for claiming them. Nowhere does it say you can't claim over many different years. You claim them to establish or enforce an order for support, so for some folks it will be the case that they will be claimed over two, or even many years.