Legal Fees (Assorted Topics)

That's why LTD4me has stated that we need that letter. It sure would not hurt to have it to attach to our return.

Teen makes an excellent point ~ LTD is neither a retirement allowance or pension benefit. LTD is an income insurance plan not a pension benefit.

Agreed Trooper ~ in juxtaposition we have the CRA reference below and it clearly states we can claim legal fees up to the amount we received  in benefits for said legal matter minus any RRSP contribution of said year. Allowing for 7 years to claim the legal fees that the RRSP disallows us to do for 2013. This primarily affects those who invested in RRSP's in larger sum amounts greater than their legal fee amounts.

•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 you cannot claim in the year

What we need here is once we start receiving our slips, one of us will have to take the slips to and accountant, and have their return completed, then that information can be passed on here for knowledge.

However in the meantime, I do believe the importance of continuing the research in the matter.

I have to agree Trooper that is exactly what it is stating. I have re-read it and cross referenced it several times. It clearly states we are allowed to claim the legal fees up onto the amount we received in the legal battle LESS the amount we put into an RRSP. That would mean if one has an RRSP for 2013 to offset the taxes, then they can not claim the legal fees on 2013 taxes but can do so within 7 years as in next years tax return. It is clear in the definition.

It could mean the amount you received for that year, minus rrsp contributions, in other words if you are claiming $37000 in Legal fees and you purchased $17000 in rrsp's your Legal fees would now be $20000 for deduction. Just a thought.

Is there any retired veterans who work for H&R block or CRA who can lend a hand!

Trooper Line 232 states - •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 you cannot claim in the year.

So I read it that we can not for 2013 but can for 2014 tax return especially for those who have RRSP in 2013
http://www.cra-arc.gc.ca/tx/ndvdls/tpcs/ncm-tx/rtrn/cmpltng/ddctns/lns206-236/232/lgl-eng.html

You must reduce your claim by any award or reimbursements you received for these expenses. If you are awarded the cost of your deductible legal fees in a future year, include that amount in your income for that year..

I do believe this statement applies when using Line 229 as a deduction, I do not believe it applies to Line 232.

Carver wrote:>>>>>If i interpret this correctly lets say you claim 30k for legal fees but are awarded 200k  then the 200k must be deducted from the legal fee claim leaving you zippo for a legal fee claim, please inform interpreted incorrectly.<<<<

LTD4me, this is exactly what I was reading as well...anyone else catch on to that disclaimer?

The more I read into this makes me wonder. I have read this several times the last two days on cra website. Thoughts?

Thanks for in put everyone...

This is what I like about this site, having discussions about the good or the bad, people helping people, people digging for information, it is comforting to know we have a place to go and read and discuss Issues on a daily basis.

I will be paying big time for my 2013 return, I have the funds to cover it, does it hurt, absolutely, but at the end of the day, I am alive, and to me that's what matters most.

>>>>>If i interpret this correctly lets say you claim 30k for legal fees but are awarded 200k  then the 200k must be deducted from the legal fee claim leaving you zippo for a legal fee claim, please inform interpreted incorrectly.<<<<

LTD4me, this is exactly what I was reading as well...anyone else catch on to that disclaimer?

The more I read into this makes me wonder. I have read this several times the last two days on cra website. Thoughts?

I feel MC is driving forward and all we are , is a spot on the rear view mirror! They are done with us

A Friend of mine says , This retro thing reminds me of the beautiful girl  
I had a fling with in port, what a time and boy was it great, then six months later he gets hit by the clapp! Sorta like us, great in the moment now getting hit with something else, CRA, lol

"The Defendant (GOC) has agreed to ask the CRA whether they can provide a comfort letter on this point."

||||||||||||||||>>>>>>>>>>>>We "NEED" this letter<<<<<<<<<<<<<<<<<<<|||||||||||||||||||||