Spousal Support

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YankCanuck
Posts: 12
Joined: Sat Feb 07, 2015 1:43 am

Spousal Support

Post by YankCanuck »

If I live in the US but collect spousal support from a Canadian resident, is this income reported in Canada?
nelsona
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Post by nelsona »

By careful planning, your alimony could be tax-free to you, and tax-free to your ex.

It requires specific wording in your divorce agreement.

I'll let you read about it:

http://gedeonlawcpa.com/does-a-us-resid ... -resident/
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing :D
YankCanuck
Posts: 12
Joined: Sat Feb 07, 2015 1:43 am

Post by YankCanuck »

Thank you for confirming. My agreement quotes the US IRS Code, Seection 71 (1)(B) stating that the payments are not includable in gross income and not allowable as a deduction under Section 215.
nelsona
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Post by nelsona »

Perfect
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing :D
YankCanuck
Posts: 12
Joined: Sat Feb 07, 2015 1:43 am

Post by YankCanuck »

Would it be necessary to file a Canadian tax return if I were a US resident when receiving support in Cdn funds?
nelsona
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Location: Nowhere, man

Post by nelsona »

No. By treaty alimony paid to US residents is not taxable in canada.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing :D
Allycat
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Joined: Sun Mar 13, 2016 6:35 pm

Post by Allycat »

where can i find out more about this "specific wording" on the gedeon website? anybody know a link? My divorce agreement is now 6 years old. Can I just get my ex to write something and get it notarized or something?
nelsona
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Post by nelsona »

The IRS.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing :D
Allycat
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Joined: Sun Mar 13, 2016 6:35 pm

Post by Allycat »

I have looked extensively on the IRS website for some corroboration of this exemption mentioned on the gedeon site, but can't find anything about it.
nelsona
Posts: 18314
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Post by nelsona »

Then I guess gedeon is the next place to ask.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing :D
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