| BANKRUPTCY | RAPs | PROVINCES/TERRITORIES | NET INCOME | COMPLEX ENQUIRIES |
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What is DC905
What form does the trustee file to report date of bankruptcy?
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Yes we can process the RAP to remove the full amount of an incorrectly reported amount from one field and report it on another.
TP has reported their pension income on the wrong line 13000 and they need to adjust their return to report their income on the correct line 11500. The slips on file support this request. Can we process this RAP over the phone?
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What is Form ON-BEN
• Field 61070 – tick the box to apply • Field 61120 - enter the amount of property tax paid for a principle residence
What form and fields do taxpayers need to complete to apply for the OSHPTG?
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The taxpayer must fill out a separate Form T1158 for each order or agreement that they must register. They must send Form T1158 and a copy of the order or agreement to the tax center indicated on the form and separately from their income tax return.
Before claiming a deduction for support payments made, what form must the TP complete and submit with copy of court order/written agreement?
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What is T1213
What form does TP need to complete to request to reduce tax deduction at source?
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What is
• the return for the year prior to the bankruptcy; • the pre-bankruptcy return; and • any required in-bankruptcy return (may be required for years after year of bankruptcy).
Which returns MUST the trustee file on behalf of the bankrupt TP?
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A request to change the province of residence on the return cannot be processed over the phone or on CMR- Advised TP to submit request in writing to TC
As a Tier 2 agent you have received a confidentiality transfer with TP request for reassessment. The TP made a mistake when filing their 2022 return. The TP used an Ontario return and they are actually a resident of Alberta. How can you help this TP?
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What is NS428
TP is a resident of Nova Scotia. TP would like to claim the provincial Age tax credit. TP is 73 years old and their annual taxable income is $21864. TP would like to know what form she claims the credit on?
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-Child care expenses were incurred to allow the TP or a supporting person to go to work or school
-Child care expenses were paid for an eligible child -The type of expense is eligible -Child care expenses are reported on official receipts
TP works full-time Monday to Friday and their child attends daycare while the TP is at work. What conditions does the TP need to meet for child care expenses to be eligible?
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What is $79845
TP has received a notice that OAS recovery tax will be withheld at source on their OAS benefits and had to repay part of their OAS benefits when filing their tax return. The TP would like to know what is the repayment threshold for 2021?
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We cannot assist with the RAP. Trustee would have be authorized as a REP to request RAP to year subsequent to bankruptcy and discharge.
A discharged bankruptcy trustee calls the CRA to request a reassessment of TP return for a year subsequent to bankruptcy. Does the CRA consider this discharged trustee to be an authorized REP and are we able to assist with the reassessment?
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• Can only be updated to “1” or YES if related fields in section A of the ON BEN (61100 (6110), 61120 (6112), etc.) have been updated otherwise, must be submitted in writing, via ReFile or CMR.
• Delete the application by updating the field to “0”.
Can field 61020 on the ON-BEN form be adjusted over the phone?
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The amount is calculated as if the taxpayer who transfers the amount (child, spouse or common-law partner, or dependant) was a resident of the same province or territory as the person who receives the transferred amount
If the TP is a resident of Manitoba and TP claims DTC transfer from dependant who resides in province of Alberta are there any special rules?
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Form T1A- 20 years carry forward
What form is used to determine if a non-capital loss in the year has occurred and if the loss incurred in 2021 how long can a TP carry it forward?
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Tp can apply for TP relief or interest charged
TP can complete RC4288 or apply on MA
TP is experiencing financial hardship and is unable to pay the interest charged on their T1 return. Does this TP have any options? If so, what does the TP need to do?
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Possibly 2- If the pensioner elects to split their pension paid in the pre-bankruptcy period, the pensioner calculates the amount in Step 3 of Form T1032, Joint Election to Split Pension Income for 20XX and deducts it on line 21000 of their pre-bankruptcy return.
If the pensioner elects to split their pension paid in the post-bankruptcy period, the pensioner calculates the amount in Step 3 of Form T1032 and deducts it on line 21000 of their post-bankruptcy return. The pension transferee (receiving spouse or common-law partner) who is not bankrupt, reports the total of the amounts calculated on Step 3 of Form T1032 on line 11600 of their return. It will equal the total amount their spouse or common-law partner reported on line 21000 of their pre and post bankruptcy returns.
TP calls CRA and would like to elect to split their pension income for the whole year with their spouse. The TP meets the conditions to split pension income. The TPs date of bankruptcy was on April 28. The TP would like to know how to report on their tax return and their spouse’s return. How many T1032’s need to be completed?
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Elected split pension amount cannot be adjusted over the phone. Each spouse or common-law partner must submit the same adjustment request with modified Form T1032
TP calls CRA as they forgot to elect to split their pension income with their spouse on their T1 return. Can we process this RAP over the phone to assist TP?
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They will not be entitled to the available annual amount for each year they are not SK residents.
If they resume being SK residents they can continue claiming the applicable percentage each year as long as they are still within 7 years of graduation but the amounts forfeited while living in another province cannot be recovered.
TP is a resident of Saskatchewan. TP calls CRA to provide new address as they are moving to the province of BC in a few days. The TP has completed the prior year T1 return and claimed the Saskatchewan graduate tuition tax credit. After updating their address, the TP wants to make sure they are still able to claim the credit for the next tax year. What would you advise this TP?
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Passenger vehicle- Lesser of total interest paid in the year or $10 multiplied by # of days interest was paid
TP calls to enquire how to claim their employment expenses. TP states that in 2021 they obtained a loan to acquire a new vehicle used for employment. The TP acquired a SUV that is not used to transport goods, equipment or passengers. The TP uses the vehicle to meets with clients at their place of business. They use the vehicle 75% percent of the time for employment purposes. You have determined that the TP meets the conditions to claim motor vehicle expenses. What type of vehicle does this TP have? How does this TP claim the interest expense?
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Matching should automatically reverse the penalty when they adjust field 55940 (5594) during the reassessment.
If the penalty was not corrected but the conditions are met, send Form T196 to Matching asking them to reverse the penalty
TP calls CRA as they have received their NOA and have been charged a penalty for repeated failures to report income. TP reported $1000 pension income on the incorrect line. The TP states they have requested an adjustment to correct this and after reviewing TP’s file you can see that there was a reversal of the initial matching reassessment however the penalty was not adjusted. How can you help this TP?
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Yes- - if the discharge of the bankrupt occurs in the same year as the year of bankruptcy, a loss from a following year could be applied on the post-bankruptcy return- Ref: Note 2 Loss carryback chart
TP declared bankruptcy on Feb 4. On December 8 of the same year, they obtained a bankruptcy discharge. The TP incurred a non-capital loss of $4275 in the tax return for the year following the year of bankruptcy. Can the TP carry this loss back to his post-bankruptcy return?
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If a taxpayer requests an adjustment to a 152(7) assessment, they should be advised to file their own paper income tax return
You receive a confidentiality transfer as TP received NOA for an assessment under subsection 152(7) and TP would like to request adjustment as “amounts are all wrong”. What would you advise this TP?
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-a resident of Ontario on or before December 31 of the prior year, and one of the following conditions applies:
-they will be 18 years of age or older before June 1 of the subsequent year; -they had a spouse or common-law partner on or before December 31 of the prior year; or -they were a parent who lives (or previously lived) with their child; and for the prior year, at least one of the following conditions applies: -rent for their principal residence was paid by or for them -property tax for their principal residence was paid by or for them -they lived on a reserve in Ontario and home energy costs were paid by or for them for their principal residence on the reserve -they lived in a public long term care home in Ontario and an amount for accommodation was paid by or for them -they lived in a designated Ontario university, college, or private school residence
TP is a resident of Ontario. TP calls the ITE line as they were told by their neighbour who lives in the same apartment building that by claiming their rent they receive a monthly payment from the government. TP would like to know what kind of payment it is and if they are eligible for the payment as they also pay monthly ELIGIBLE rent. What credit is this TP asking about and what eligibility criteria does the TP have to meet?
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500 Register new agreement- Sent T1158 with copy of new agreement
Report full amount of support paid for both spouse and child on line 21999 and claim deduction for spousal support on line 22000
TP calls to enquire why CRA has changed their line 22000 amount of support payments made. TP is required to pay spousal and child support. Agreement on file dated November 2019. As per agreement details on file, TP is required to make child support payments of $10000 annually and spousal support payments of $10000 annually. TP initially claimed $7500 on line 21999 and 22000. TP also states they are only required to pay $7500 annually for child support and $7500 annually for spousal support as per new agreement. What actions does this TP have to take and how do they correctly report their support payments made?
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Taxpayers who did not file their objection on time because of circumstances beyond their control, can apply for a time extension. They have to write and explain to the Chief of Appeals why they did not file on time, and enclose their objection. They must apply as soon as possible, but no later than one year after the date they had to file the objection.
TP filed their 2021 return before the filing deadline of May 2, 2022. Before the return was assessed the TP was subject to a pre-assessment review. TP submitted all required documents and thought everything was taken care of. The TP did not receive their NOA for the 2021 return dated April 30, 2022. The TP was in a car accident on March 12, 2023. and spent 12 weeks in the hospital. When the TP was released from the hospital in June 2023 they found a statement of account in their mail with a balance owing for the 2021 tax year. The TP disagrees with their 2021 NOA and thinks CRA has misinterpreted the facts. TP would like to file an objection to their 2021 T1 return. The TP calls CRA on July 7, 2023. Is this TP able to file an objection? What would you advise this TP?
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