Is a vehicle considered an s.7 expense for post-secondary

[trinton]

Is a vehicle considered an s.7 expense for post-secondary

What is the distance from osgoode to Algonkin college?

Given the distance from Osgoode to Algonquin College, it is appropriate for the Respondent to pay for some of the travel costs for Danielle to attend school.


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[blinkandimgone]

Google maps has it at 28km, drive time of 29 minutes.

[trinton]

Google maps has it at 28km, drive time of 29 minutes.

Wow. The judge makes it sound like its at least a 2 hour drive 30 minutes. Wow. People use a sub or train to get to work and spend at least an hour on it. It's cheaper and they don't have to pay for parking.

This whole unilateral decision to purchase a car is more of a luxury thing than an absolute necessary. A car is not needed to receive an education. Where did the money to purchase the car come from. Couldn't that have gone towards tuition?

Sounds like hey lets go buy a car and get daddy to pay for it since he's paying child support.


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[m-chan68]

I would be very curious to the outcome of this myself. I am actually employed in the automotive profession so I know first hand what the overall costs are, with purchasing, owning and maintaining a vehicle. A vehicle is a HUGE expense as we all know. And I certainly don't feel it is any parent's responsibility to provide to their child, not unless of course the parents have the means, and choose to provide it.

[rockscan]

First, are you calculating the expenses properly? You calculate the net cost of the expense. If youre paying 80% then it sounds like your income is significantly higher than your ex. If you live in Ontario then your kid is eligible for grants through OSAP. Second, if your income is over 100,000 a year you may lose this argument as kid may need a car to get to school since public transit is more than an hour one way. Finally, you cant negotiate the tax credit, it comes off the cost you pay.

[bake]

Hello Rockscan, can you please explain net costing?

This year I will have spent over 5K on post-secondary expenses to date (daughter has just started 3rd year). I have not claimed anything on my taxes for the last 2 years as my daughter was not agreeable to this.

This is after having OSAP application grant (30%) deducted, and RESP.
My daughter pays 1/3 and myself and ex split the 2/3 based on 80/20 split.

I put the following forward in my offer to settle w.r.t. this issue.

In an effort to assist each child of the marriage with their financial contribution towards their portion of post-secondary expenses, I propose that each year a child attends a post-secondary institution that the child transfers 80% of the 2/3 costs (tuition and book expenses) to the respondent so that he may claim his 80% contribution on his tax return. This will benefit each child of the marriage during every academic year of post-secondary since it will monetize the tax credit immediately as opposed to deferring it to future years when the child enters the work force. The respondent will provide the applicant with his tax returns which will show the benefit of the calculation and forward the difference to the child every academic year. I also recommend that the applicant do the same. There is no financial advantage or disadvantage to the respondent or the applicant but rather an immediate financial benefit to assist each child.

Thanks

[rockscan]

You cant do that. You take the tax benefit off the amount you pay. Youll need to do up a fake return online using your exs income to determine what the tax benefit is and then subtract that from the amount you pay.

Your amount will be (tuition + books - tax benefit) * 80%. Thats the net cost.

$5000 at 80% is not a lot. My partner pays ~30% and his costs for two years are at $5000.

[Perserverance]

What if you live in a rural town where public transit to the city is not available or even offered? Could a vehicle possibly be considered as a S7 if the child requires some form of transportation to the city for school purposes?

[rockscan]

What if you live in a rural town where public transit to the city is not available or even offered? Could a vehicle possibly be considered as a S7 if the child requires some form of transportation to the city for school purposes?

Yes and it would be. Kid would also be able to opt out of the bus pass if its included in tuition to save that $200.

The parents in this situation may want to look at the cost break down between a car or residence to live on campus. Most universities charge $9000 and up for residence whereas cars cost about $8000. With residence fees, child support would be reduced or the full table amount would be applied to the cost of living for kid.

Im not a lawyer though so this is all grain of salt advice. Most judges now are leaning on payors who make upwards of $100,000 to pay a hefty share. One would need to argue very heartily for certain costs.

[trinton]

What if you live in a rural town where public transit to the city is not available or even offered? Could a vehicle possibly be considered as a S7 if the child requires some form of transportation to the city for school purposes?

What's next, the support payer has to pay the child's cellphone bills under a S7 expense?


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[Perserverance]

A cellphone is not at all the same thing.

I was just putting it out there as a potential reason for which a vehicle may be considered a S7. Some children may not have public transit as an option to get them to school.

[trinton]

Is a vehicle considered an s.7 expense for post-secondary

A cellphone is not at all the same thing.

I was just putting it out there as a potential reason for which a vehicle may be considered a S7. Some children may not have public transit as an option to get them to school.

Then the child can go on campus and child support monies can be used to cover the costs of living on campus.

Or child could come live with dad and child support monies will be spent on a brand new car that could be used to visit mom whenever.


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[blinkandimgone]

What if you live in a rural town where public transit to the city is not available or even offered? Could a vehicle possibly be considered as a S7 if the child requires some form of transportation to the city for school purposes?

Yes, it is.

What's next, the support payer has to pay the child's cellphone bills under a S7 expense?


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Yes, this is frequently considered as well.

[Perserverance]

Cost of living on campus vs. a personal vehicle would definitely need to be considered.

[trinton]

Let's spend 30,000 a piece on lawyers to figure out what would be cheaper and whether this is a S7 expense regarding her education.

Oh wait, we just went through the her tuition savings.





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