Legal Fees (Assorted Topics)

Is there a statute of limitations when litigating with a civil class action suit, ie: can anyone challenge the court ruling after a set period of time?

so basically they will still, do your QRLSP calculations, add the deemed taxes, if it is the lower, of the 2 calculations, ie QRLSP calculations, or all in the current tax year. they will carry that forward to your 2013 tax return.

then they will take your income that you received for the current tax year ie what you earned in that taxation year only, apply the legal fee deduction, get your new taxable income, for that year.

carry forward the QRLSP calculation for the prior years, add the current years, new taxable income, less the legal fee credit.

this will give you 2 taxable incomes 1 the QRLSP thats carried forward, and the taxes owed on that, then the current years taxes owed after the legal fee deduction. the 2 are then merged, and your total taxes are settled, Basically, is that how it shapes up teen?

i will likely have to take it in one year but not sure yet as im still working out tax senarios.now that would double my federal tax rate.we should be able to claim this at the tax rate in the year we should have recived it without adding the deemed tax.

propat

Well I do know if your retro is beyond the 24 months you will get a QRLSP from Manulife for 2013.

The tax people I have talked to about this situation have all said the same thing to me...if you don't have to pay the taxes in one year then don't. If CRA says it's better to carry forward the tax rate then do it!

I know, an appreciate the work, many have talk and posted numbers and tax calculations. Well that applies to the individual who did the calculations. Each person will have a different taxable income every year so if you do not post the numbers don't take them as gospel as it does not reflect what your actual income is.

One other benefit from having to put the full retro amount in one year, 2013, each persons RRSP contribution for 2014 is going to be higher then normal.

Would the COLA not be compounded just like it would have been had we been paid every year?

no offence taken you will have a choice in this to take it in one year witch will increase your tax rate to whatever the ammount brings you to.

asking for the QRLSP will give you what i showed you here as an example as this was done by call of duty and these were his actual numbers.

propat

propat no offence but when you put calculations up it is very confusing.

All you should have up there is the tax rate for the year. That's it!

Amounts do not count because you will be declaring the whole retro payment you receive in 2013.

Only the tax rate is calculated forward.

robbie COD went went through this before and posted his numbers ill repost them hopeing he doesnt mind just so you have an example.

Heres why: I will show you a QRLSP Tax return I did from 1990-2002 having the income spread out and being assessed with the revised Taxes + the additional Deemed taxes so you can see the impact, that alot of Zero Sums are facing. Note revised tax is also known as the( Tax Difference)

revised tax 2002 = 0 Deemed tax =0 Deemed tax % applied=0
revised tax 2001 =0 Deemed tax=0 Deemed tax % applied=0
revised tax 2000=1202.83 Deemed tax=121.40 Deemed tax % applied=10%
revised tax1999=1830.64 Deemed tax352.29 Deemed tax% applied=19.5%
revised tax1998=1887.64 Deemed tax528.74 Deemed tax % applied=28%
revised tax1997=1823.89 Deemed tax680.15 Deemed tax% applied=38%
revised tax 1996=2490.17 Deemed tax1136.89 Deemed tax % applied=46%
revised tax 1995=2419.79 Deemed tax1350.65 Deemed tax%applied=55%
revised tax1994=2607.23 Deemed tax 1864.78Deemed tax%applied=72%
revised tax1993=4582.84 Deemed tax 3939.43 Deemed tax applied=86%
revised tax1992=1725.44 Deemed tax1733.18 Deemed tax %applied=101
revised tax 1991=0 Deemed tax =0 Deemed tax% applied= Guess 120%
revised tax 1990=678.64 Deemed tax=993.93 Deemed tax % applied=146%

This was just the federal portion. Total Tax Difference= 21,249.11 Total Deemed taxes=12,701.44

Deemed tax % overall= 60% in additional Taxes Tax nuetrality top up + 3.27% ? is it even fair or close?

propat

Thanks Teen, tax info great to know in advance. Perhaps we should have a separate thread namely Taxes 101 Settlement Info and keep it current. Sparrow

If anymore info comes my way about taxes I will post it.

No yelling just emphasizing. Now yelling I would do over wine coolers! LOL

Beer or whisky. But I did discover something cool this weekend...gummy bears soaked in coconut rum and gummy worms soaked in blueberry vodka. Diabetes and alcoholism...what a combo!

On the serious side will you continue to post relevant taxation info on here it actually does make me feel better knowing you posted it, no offence to others but i find myself jumping all over looking for info

Are you yelling Teen lol, i think your stressed buddy you need some wine coolers

Damn ain't that pretty glad you told me that, didn't earn shite anyhow lol

Your legal fees will be deducted from your TOTAL INCOME for 2013.