SOMEONE HELP ME VERIFY SOMETHING PRETTY PRETTY PLEASE

I am expecting the law firm will have to send out a receipt of some sort for the fees paid and will let us know exactly where to claim them... thanks for all the info...

you guys are much more on the ball with this. I am taking a more wait and see approach. I know very roughly what we will get, but haven't done any actual calculations to see how the interest or fees or even taxes will work out.

K9, yes, your para 8 (1)(b) is basically what CCRa told me. legal fees were utilized in the commission of collecting salary or wage.

yup i seen that one to sabre i think you may be right.

propat

A little further down in that section is says:

"You can also deduct on line 229 legal fees you paid to collect (or establish a right to) salary or wages. It is not necessary for you to be successful; however, the amount sought must be for salary or wages owed. You must reduce your claim by any amount awarded to you in respect of those fees or any reimbursement you received for your legal expenses. "

When you click on line 229, it says:

"Repayment of salary or wages - You can deduct salary or wages you reported as income for 2012 or a previous year, if you repaid them in 2012. This includes amounts you repaid for a period when you were entitled to receive wage-loss replacement benefits or workers' compensation benefits. However, you cannot deduct more than the income you received when you did not perform the duties of your employment."

I believe this is more appropriate as SISIP is wage-loss replacement, it is not a pension.

Here is the link so you all can take a look yourself:
http://www.cra-arc.gc.ca/tx/ndvdls/tpcs/ncm-tx/rtrn/cmpltng/ddctns/lns206-236/232/lgl-eng.html?=slnk

Sabrelove

It as nothing to do with the settlement, the fees are deducted regarding what is under,

here is the web page: http://lois-laws.justice.gc.ca/eng/acts/I-

I've been told by CRA that the case was from 2007 to 2013, so the fees can be divided by 6 and put on those years, or all in one year if you pay all income for 2013.

here it is.

art8 (1) b)


8. (1) In computing a taxpayer’s income for a taxation year from an office or employment, there may be deducted such of the following amounts as are wholly applicable to that source or such part of the following amounts as may reasonably be regarded as applicable thereto
(a) [Repealed, 2001, c. 17, s. 3(1)]
Marginal note:Legal expenses of employee

(b) amounts paid by the taxpayer in the year as or on account of legal expenses incurred by the taxpayer to collect or establish a right to salary or wages owed to the taxpayer by the employer or former employer of the taxpayer

maggie sorry that first one was a slip just look at the second.

propat

good man wills and good luck.

propat

thanks wills.

propat

thanks propat. I will apply tomorrow

maggie i think this may be the moast proper but im not sure.

Line 232 - Legal fees

You can deduct your expenses in any of the following situations:
•You paid fees (including any related accounting fees) for advice or assistance to respond to us when we reviewed your income, deductions, or credits for a year or to object to or appeal an assessment or decision under the Income Tax Act, the Unemployment Insurance Act, the Employment Insurance Act, the Canada Pension Plan, or the Quebec Pension Plan.


• You paid fees to collect (or establish a right to) a retiring allowance or pension benefit. However, you can only claim up to the amount of retiring allowance or pension income you received in the year, minus any part of these amounts transferred to a registered retirement savings plan or registered pension plan. You can carry forward, for up to seven years, legal fees that you cannot claim in the year.


again not positive its this one as there is a few it can be deducted on

propat

wills you have to apply.

propat

Thanks propat and Will's... I hesitate to count on anything with this until I see it in writing.

On legal fees, I spoke to a former CCRA auditor as well as a current CCRA employee. Since we paid legal fees in pursuit of a settlement then these fees can be claimed. CCRA views these fees as a necessary expense incurred.

Thanks propat. Do I have to apply for this PIA or will it come automatically as a result of the letter I recd??

maggie i dont think it is in the agreement but i do belive the CRA does allow legal fees to be deducted in some cases and i think recovery of taxable income is one of them but i will try and double check that tommorrow.

propat