Trevor Marsh, CA, CFP

Financial Advisor

As appeared in The Business Link Niagara September 1, 2007

 

 

QUESTION

My parents are over 65 and depend on me for financial support. Are there any income tax considerations I should be aware of?

 

ANSWER

Yes. In fact the tax system has developed various tax savings opportunities for individuals that financially support their parents or grandparents that meet one or more of the following conditions:

  • Over 65 years of age
  • Lives with you
  • Is disabled
  • Has medical/attendant care expenses
  • Lives in a retirement/nursing home

For example, if your parent or grandparent…

  • Lived with you in 2006, you may have been eligible to claim a Caregiver Amount Tax Credit up to $3933.
  • Was eligible to claim the Disability Tax Credit, the unused portion could be transferred to you, up to a maximum of $6741.
  • Had medical expenses or attendant care costs that were paid by you, you may have been able to claim all or a portion as a medical expense tax credit.
  • Lived in a retirement/nursing home where you paid the portion designated as nursing care, transfer the medical expense tax credit of up to $10, 000 to your return.

Proper advice and planning could save potentially several thousand dollars of personal income taxes.

 

 

 

Assante Capital Management  Ltd. (Member CIPF)

109 Russell Ave., St. Catharines, Ontario

E-mail: tmarsh@assante.com

Tel: 905-641-6654 ∙Toll Free: 866-434-9292