Ok, I respect the consistency even if I don't share the objections.Dogger1953 wrote:Yup, I have the same objections to this group,On what grounds? Any similar objections to millionaire couples keeping their income to "only" 142k so they can keep their full OAS?
Hopefully you make a distinction between tax planning and tax evasion/fraud. None of the latter is going on here, just trying to follow the rules to her best outcome.and to people who work "under the table" and don't pay their fair share of taxes.
For tax purposes one reports an RRSP contribution in the year it is made but can choose to defer the claim until a higher marginal tax rate year(factoring in the time value of money). Since GIS is based on one's tax return I figured this would work but now I'm not so sure.I don't know how it would work for tax purposes, but for GIS purposes I don't think you can "carry forward" any RRSP contribution in 2016 against income from future years.
Thanks for the explanation.I haven't looked at the forms in a while, but where a loss of income (such as a reduction or cessation of pension income) occurs in a current year, any estimated income from that source for the remainder of the year is pro-rated and added to any other estimated income the person has for that year, in order to determine the income that will be used to determine GIS entitlement.
I see, will try to find the form and obtain more info.That's another reason why your in/out of RRSP monies for 2016 probably won't work for GIS purposes, as the contribution will simply offset the withdrawal for 2016.
More confused than ever about all of this but that's not necessarily a bad thing. Just need to do more homework, much prefer to learn about these issues beforehand than after mistakes are made. If the twist won't work, so be it. Not worth attempting unless it's guaranteed to be effective, prepaying higher taxes without obtaining any benefit is a rather large mistake and the possibility of dying before using up the deductions is another risk with the strategy even if it is workable. Thanks for bringing up these issues.