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Difference between revisions of "Property and Debt in Family Law Matters"
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Property and Debt in Family Law Matters (view source)
Revision as of 23:30, 18 May 2013
, 23:30, 18 May 2013→Tax issues
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==Tax issues== | ==Tax issues== | ||
For many people, there will be no tax impact from the division of their assets. There will, however, be a tax impact if the division creates what the Canada Revenue Agency deems to be ''income''. | For many people, there will be no tax impact from the division of their assets. There will, however, be a tax impact if the division creates what the [http://www.cra-arc.gc.ca/menu-eng.html Canada Revenue Agency] deems to be ''income''. | ||
The most common kind of taxable income people have is employment income. Some other kinds of taxable income include: | The most common kind of taxable income people have is employment income. Some other kinds of taxable income include: | ||
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*the profit realized from the sale or transfer of real property that isn't the family's principle residence. | *the profit realized from the sale or transfer of real property that isn't the family's principle residence. | ||
When you report this sort of income in your tax return, the | When you report this sort of income in your tax return, the CRA considers it to be taxable income, income that may be taxable at different rates. | ||
The purpose of this part of this section is to alert you in a general way to the possibility that there may be tax implications as a result of family property being divided, and that there are sometimes ways to avoid this sort of unfairness. This is, however, a complex area of family law, and if you have a problem of this nature, you really should get the advice of a lawyer who specializes in tax issues; store-bought or online tax software will not identify these issues. You probably don't want to pay any more tax than is absolutely necessary! | The purpose of this part of this section is to alert you in a general way to the possibility that there may be tax implications as a result of family property being divided, and that there are sometimes ways to avoid this sort of unfairness. This is, however, a complex area of family law, and if you have a problem of this nature, you really should get the advice of a lawyer who specializes in tax issues; store-bought or online tax software will not identify these issues. You probably don't want to pay any more tax than is absolutely necessary! | ||