| Glossary of
Financial Terms |
|
|
| Click above
to find out how Fiscal Agents can assist you
in RRIF Investing. |
|
|
|
Now
Quick-Nav enabled!
Use this link to connect you directly to additional useful information
related to RRIFs.
|
|
|
| Click above to view
a specialized glossary of RRSP and RRIF terms. |
| |
 The
Money Management Newsletter: Retirement
Income Planning
Eldercare: Under a microscope
Part 6 of 6: Disability
Tax Credit Transfer
By Anne Chun,
C.A., CFP
Money Management Newsletter - February 2004
In
part 1 of the series, which discussed the various tax treatments of medical
related expenses. Disability Tax Credit was identified as a tax credit.
In part 3 of the series, we discussed the details of the Disability Tax
Credit. In this article, we will focus on the details of transferring
the Disability Tax Credit to another person.
There are a number of conditions you have to satisfy
before you can claim the unused part of the Disability Tax Credit from
another person.
- Transfer to a spouse-any portion of the unused Disability
Tax Credit may be transferred to a spouse. In addition, the $10,000
Medical Expenses Tax Credit for attendant care or the remuneration paid
to a group home can be claimed by either spouse and does not have to
be claimed by the patient first.
- Transfer where the disabled person was claimed as
an Eligible Dependant-provided the disabled person's spouse is not claiming
the Spouse amount or any of the transfers on Schedule 2 including the
transfer of the Disability Tax Credit. Conditions to claim the disabled
person as an Eligible Dependant require the disabled person to be a
resident of Canada for tax purposes (unless he/she is your child), that
the disabled person was living with you in a dwelling that you maintained,
and that you are related by blood, marriage or adoption. If these conditions
are satisfied, you can claim the Eligible Dependant Tax Credit for a
parent, grandparent, or a relative who was born in 1984 or earlier and
was mentally or physically infirm, or a person who was under 18 when
you provided support.
- Transfer to a parent, child, brother or sister-if
you have a disabled parent, child, brother or sister living with you
in a self-contained domestic establishment and wholly dependant on your
household for support, you may (if there are no spousal claims) claim
the unused portion of the Disability Tax Credit. You can claim it even
if you yourself are married and the disabled person has enough income
to disallow the Eligible Dependant claim. A parent or child of the disabled
person may claim the unused portion of the disabled person's disability
amount if the disabled person's spouse is not claiming either the spousal
amount or any transfer credit, and no one is claiming the disabled person
as an Eligible Dependant.
- You can make claim the unused portion of the
Disability Tax Credit for each (Canadian resident) parent or child of
you or your spouse who either lives with you in a self-contained domestic
establishment or is dependant on you by reason of infirmity, whether
living with you or not.
 |
* CA PrimePlus Services
is a registered trademark of the Canadian Institute of Chartered Accountants.
Eldercare/CA PrimePlus Services is a customizable range of financial management
services for elderly and disabled persons.
Anne Chun, C.A. CFP is the principal of Anne Chun Professional Corporation,
providing financial, tax, estate and Eldercare services. She is also the
co-author of "Planning your Financial Future". Find out more
from her web site (www.annechun.ca).
*
* *
|
|
Use this link to load a printer-friendly
version of this document. |
Have a question regarding this article? Use our feedback form to send us a note.
©
, Fiscal Agents Money Management Newsletter
25 Lakeshore Road, Oakville, On L6K 1C6.
(905) 844-7700
|
|
|
