Tax option costs senior rent relief
August 28th, 2008
James Daw
A diligent tax preparer and his clients have discovered a major detriment to using the new pension-splitting strategy.
This tax-planning option, which became available to eligible couples in 2007, looked like a dandy way to save an elderly man and woman $550 in federal and Ontario taxes.
But, as it turned out, the combined savings – plus much, much more – would disappear: Splitting their income cost them nearly $4,800 when the wife lost her nursing home rent subsidy.
