Personal Finance

T5 slip (interests) : Can it be claimed fully by the spouse ?

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  • May 2nd, 2019 9:30 pm
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Deal Fanatic
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Nov 19, 2004
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P90Puma wrote:
Feb 27th, 2018 4:08 pm
For our situation we both work and the T5 is interest on our joint account.
Can probably just claim 50/50, but really should be the same ratio as the incomes. So if one spouse makes 70% of the income, then that spouse claims 70%, but usually 50/50 doesn't raise any flags if both are working.
Deal Addict
Nov 4, 2007
1343 posts
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Toronto
What if both spouses make equal amounts 50/50. But one spouse’s income is used only for expenses but the other spouse’s income is used only for investments?
Jr. Member
Aug 21, 2016
199 posts
86 upvotes
I have a similar question. The account was closed early in the year and in 2017 only had money belonging to one person in it so they'll claim 100% of the amount on the slip. Does the second person need to include the slip and put 0% as their portion or can it be left out of their return?
Sr. Member
Mar 6, 2010
727 posts
84 upvotes
Just want to clarify that even your wife is 0 income, it does not mean that interest is fully tax free. You will loose the room on tax credit transfer from you wife. In AB, this tax rate is 25% (15% Feb + 10% Provincial).
Newbie
Nov 28, 2006
19 posts
14 upvotes
One question: I have a joint saving account with my wife... From there I made a GIC under MY name only (the bank won't let me put both names when I do the GIC on line) and at the end of the GIC money goes back to the joint account... The T5 reported in that particular GIC has to be reported under my name only or (considering money goes back to joint account) can be split 50/50?? It is actually for both...
Thank in advance!
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Nov 19, 2004
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horacio wrote:
Jan 7th, 2019 7:51 am
One question: I have a joint saving account with my wife... From there I made a GIC under MY name only (the bank won't let me put both names when I do the GIC on line) and at the end of the GIC money goes back to the joint account... The T5 reported in that particular GIC has to be reported under my name only or (considering money goes back to joint account) can be split 50/50?? It is actually for both...
Thank in advance!
Yes, 50/50 is fine assuming that is how the money is attributed (ie. Both you and your wife are earning an income).
Newbie
Aug 20, 2013
66 posts
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Edmonton
how long does the attribution rules hold for gifted cash?
Example, i contribute $100k for 10 years and have $1m cash, and generated $10K T5 for the year. All cash is gifted to the spouse. What percent do i put?
Is it 10%(of the T5) since i only contributed 10% of the total $1m for the year? or is 30% for 3 years worth, 50% for 5 years? is it attributed back to me FOREVER?!? (i cannot find the answer to this, it would be ridiculous to be attributed to me for the rest of my life)
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Nov 19, 2004
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MrMcMike wrote:
Apr 30th, 2019 7:11 pm
how long does the attribution rules hold for gifted cash?
Example, i contribute $100k for 10 years and have $1m cash, and generated $10K T5 for the year. All cash is gifted to the spouse. What percent do i put?
Is it 10%(of the T5) since i only contributed 10% of the total $1m for the year? or is 30% for 3 years worth, 50% for 5 years? is it attributed back to me FOREVER?!? (i cannot find the answer to this, it would be ridiculous to be attributed to me for the rest of my life)
It is all attributed to you since it is all your money invested. Why would the length of time matter?

If your spouse starts contributing, then that portion would be attributed to your spouse. If you want to get around it then loan the money to your spouse, charging interest per the guidelines and then your spouse can invest it.
Newbie
Aug 20, 2013
66 posts
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Edmonton
don242 wrote:
Apr 30th, 2019 8:19 pm
It is all attributed to you since it is all your money invested. Why would the length of time matter?

If your spouse starts contributing, then that portion would be attributed to your spouse. If you want to get around it then loan the money to your spouse, charging interest per the guidelines and then your spouse can invest it.
Well since the money my spouse invested since it is all hers after gifting, not mine. Why should I pay tax on investment earned for the rest of my life on money I don't have anymore? Isn't there a rule like RRSPs where the spousal RRSPs can be withdrawn after 3 years under her taxable income? Who loans money to their spouse?

likewise, If i gave all my money to my "friend" and he deposited/invested it, do I pay taxes on his income earnings forever? Seems it may be better to not get married if this is so.
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Nov 19, 2004
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MrMcMike wrote:
Apr 30th, 2019 8:29 pm
Well since the money my spouse invested since it is all hers after gifting, not mine. Why should I pay tax on investment earned for the rest of my life on money I don't have anymore? Isn't there a rule like RRSPs where the spousal RRSPs can be withdrawn after 3 years under her taxable income? Who loans money to their spouse?

likewise, If i gave all my money to my "friend" and he deposited/invested it, do I pay taxes on his income earnings forever? Seems it may be better to not get married if this is so.
When you put your money in the bank, is it still yours after 3 years? 10 years?

I gave you an option if you want to attribute it to your spouse. It is relatively straightforward.
Newbie
Aug 20, 2013
66 posts
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Edmonton
don242 wrote:
Apr 30th, 2019 8:37 pm
When you put your money in the bank, is it still yours after 3 years? 10 years?

I gave you an option if you want to attribute it to your spouse. It is relatively straightforward.
No, it is no longer mine after i deposit it into the bank, it is my spouses. I have no access to the account and unable to withdraw it under agreement that it is 100% my spouse's. Would it be clearer if it was immediately transferred to her personal account right after it arrives in the joint account? Maybe i will do just that after this round of taxes.
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MrMcMike wrote:
Apr 30th, 2019 8:56 pm
No, it is no longer mine after i deposit it into the bank, it is my spouses. I have no access to the account and unable to withdraw it under agreement that it is 100% my spouse's. Would it be clearer if it was immediately transferred to her personal account right after it arrives in the joint account? Maybe i will do just that after this round of taxes.
If it was your income invested, it gets attributed to you no matter whose account you put it in (unless you set up a legal trust or suggested spousal loan) . The CRA is very clear about it, otherwise we would all just "gift" it to our kids or non working family members to lower our taxes.
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Feb 19, 2010
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MrMcMike wrote:
Apr 30th, 2019 8:56 pm
No, it is no longer mine after i deposit it into the bank, it is my spouses. I have no access to the account and unable to withdraw it under agreement that it is 100% my spouse's. Would it be clearer if it was immediately transferred to her personal account right after it arrives in the joint account? Maybe i will do just that after this round of taxes.
@don242 has already explained this to you at least twice. The income from that gift is attributed to you. That's the law.

If you want a simple way around that, lend the money to your wife utilizing a duly executed promissory note and including a prescribed interest rate and your problem is solved. This does, however, require your wife to pay you annual interest on that loan which is deductible to her and income to you.

Don't shoot the messenger. Clearly, you were looking for the answer or you wouldn't have asked.
Newbie
Aug 20, 2013
66 posts
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Edmonton
ok thanks,
i will do the spousal loan. :)

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