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Cumulative capita lossesand child support

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  • Cumulative capita lossesand child support

    I realize they use line 150 to calculate child support payments but I have capital losses to reflect my true income. To reach the amount on line 150 you would bave your emplyment income plus the capital gains but then net losses are applied later for taxable income on li.e 260.

    Is there some kind of exception to take this loss into consideration when calculating child support payments.


  • #2
    From SCHEDULE I: FEDERAL CHILD SUPPORT TABLES - Children Come First: A Report to Parliament Reviewing the Provisions and Operation of the Federal Child Support Guidelines - Volume 2



    Capital gains are reported and taxed differently than regular income. A spouse reports 75 percent of the actual capital gains on his or her federal income tax return, even though the spouse benefits from the entire capital gain. Therefore, subject to subsection 17(2) of the Guidelines,[399] it is appropriate, when determining Guidelines income, to include the actual capital gains and not the gains reported on the tax return.

    Capital gains and capital losses

    6. Replace the taxable capital gains realized in a year by the spouse by the actual amount of capital gains realized by the spouse in excess of the spouse's actual capital losses in that year.

    For income tax purposes, capital losses are set off against capital gains, so only the net taxable capital gain is included in total income. By substituting actual net capital gains for taxable capital gains, no further adjustment is required for capital losses incurred in the year. If capital losses exceed capital gains, one can carry the excess loss forward. One can also carry back these capital losses to any of the prior three years, setting these losses off against any capital gains in those years. The Guidelines only let one adjust income by the capital losses in that year.

    my comment: so provided that you have capital gains in the year, you should be able to net the capital losses off of it (including carried forwards capital losses) and use the ajusted figure for calculation of the basis for support.

    There are also provisions to deal with union dues, professional fees, and expenses against commissionable income.


    • #3
      Thanks...since I am representing myself, I imagine her lawyer will want to argue this point. A nudge will probably have to decide. If I were to bring up a motion to argue this point, I wonder if I would be on the line for court costs if the nudge sides with her?


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