Claiming Legal Fees (Case Law) For Tax Deduction in Child Support Matters

[Tayken]

Hi All,

I know this question comes up often on the forum so I thought this case law and following articles regarding claiming legal fees on line 221 was important. A parent on April 19, 2010 won the right to claim legal fees in an appeal setting forth the case law for tax deductions for a payer of child support to deduct legal fees from their taxes.

The case law is as follows:

Trignani v. The Queen, 2010 TCC 209 (CanLII)
Date: 2010-04-19
Docket: 2008-3989(IT)I
URL: CanLII - 2010 TCC 209 (CanLII)
Citation: Trignani v. The Queen, 2010 TCC 209 (CanLII)

Article in the Lawyers Weekly on the subject:

"Child support payer can deduct legal fees spent on child support bid"
- "Father can deduct even though he has paid, not received, support"

The Lawyers Weekly - May 7, 2010

Another article on the topic:

Child Support Payer can Deduct Legal Fees spent on Child Support Bid
Cristin Schmitz for The Lawyers Weekly
May 7, 2010

The Tax Court has ruled that a father with joint custody of his son is entitled to deduct the legal fees he spent to pursue child support, even though the father has always paid, rather than received, child support.

Child Support Payer can Deduct Legal Fees spent on Child Support Bid - Canadian-Lawyers.ca

Good Luck!
Tayken

[sahibjee]

awesome link! thanks

[hadenough]

Thx Tayken. I will definitely be needing to look into this.

[Canadaguy]

I was under the impression that you cannot claim legal fees you paid to establish custody of a child. Is the outcome of this case saying otherwise?

[mememe]

Tax deduction And legal fees

Are there any cases to support tax deduction for legal for spousal support only. There are no kids.

[torontonian]

It should be deducted (saying "should" 'coz mine is being audited) given Technical News #24 of Oct 10 2002 allowing it.

[mememe]

Are there any similar case law for spousal support only and claiming legal fees?

[torontonian]

I am quoting you CRA's own publication regarding claiming "legal costs incurred to obtain SS"... check the thread http://www.ottawadivorce.com/forum/f...89/#post106237

In particular posts by Dinkyface and Mess.

[mememe]

My accountant said it might be a flag for an audit. I hope not.

I don't understand where I find this------Technical News #24 of Oct 10 2002 allowing it.

[torontonian]

Google is a wonderful tool: ITNEWS-24 - Income Tax - Technical News No. 24

[torontonian]

You have/will claim/ed the amount your lawyer gave you to claim on your taxes, for 2011 it was on line 221...

[mememe]

It was claimed in my 2011 tax return already. I just hope it is not flagged or that they don't accept it.

[Unevenplayingground]

Hi All,

I know this question comes up often on the forum so I thought this case law and following articles regarding claiming legal fees on line 221 was important. A parent on April 19, 2010 won the right to claim legal fees in an appeal setting forth the case law for tax deductions for a payer of child support to deduct legal fees from their taxes.

The case law is as follows:

Trignani v. The Queen, 2010 TCC 209 (CanLII)
Date: 2010-04-19
Docket: 2008-3989(IT)I
URL: CanLII - 2010 TCC 209 (CanLII)
Citation: Trignani v. The Queen, 2010 TCC 209 (CanLII)

Article in the Lawyers Weekly on the subject:

"Child support payer can deduct legal fees spent on child support bid"
- "Father can deduct even though he has paid, not received, support"

The Lawyers Weekly - May 7, 2010

Another article on the topic:

Child Support Payer can Deduct Legal Fees spent on Child Support Bid
Cristin Schmitz for The Lawyers Weekly
May 7, 2010



Child Support Payer can Deduct Legal Fees spent on Child Support Bid - Canadian-Lawyers.ca

Good Luck!
Tayken

Tayken,

I don't think I am getting this 100% (it has been a long few days). I'm going to try and explain this, and hope it makes sense.

Common law couple split 2002.
Have verbal shared custody agreement.
In 2005 they both sign written agreement (amongst themselves) stating shared custody, with the ex-husband paying cs.
in 2011 husband is relocated due to employment, custody "battle" starts, also includes working out new CS payment, as child stayed with mother until primary custody was determined.

Can the father claim any legal fees associated with the cs? I'm thinking no, but just want to make sure.

Thank you for any feedback!

[Tayken]

Tayken,

I don't think I am getting this 100% (it has been a long few days). I'm going to try and explain this, and hope it makes sense.

Common law couple split 2002.
Have verbal shared custody agreement.
In 2005 they both sign written agreement (amongst themselves) stating shared custody, with the ex-husband paying cs.
in 2011 husband is relocated due to employment, custody "battle" starts, also includes working out new CS payment, as child stayed with mother until primary custody was determined.

Can the father claim any legal fees associated with the cs? I'm thinking no, but just want to make sure.

Thank you for any feedback!

Hard to say... If the mother is the primary caregiver and custody is with the mother possibly not. Not an expert in this area but, the jurisprudence in support of this article is about 50-50 access and joint custody dispute. So not sure how it could be leveraged in the matter you are describing.

The best person to ask would be a tax lawyer and second best a chartered accountant on the tax Rule.

Good Luck!
Tayken

[Unevenplayingground]

Hard to say... If the mother is the primary caregiver and custody is with the mother possibly not. Not an expert in this area but, the jurisprudence in support of this article is about 50-50 access and joint custody dispute. So not sure how it could be leveraged in the matter you are describing.

The best person to ask would be a tax lawyer and second best a chartered accountant on the tax Rule.

Good Luck!
Tayken

Thank you!