Can you deduct court ordered divisions of pensions in a divorce settlement?
scenicruzer asked:
As part of a division of assets, I was required to split my company pension and transfer 50% to my ex-common-law wife. Can I deduct this from my income tax?
As part of a division of assets, I was required to split my company pension and transfer 50% to my ex-common-law wife. Can I deduct this from my income tax?
also, keep in mind this is in Manitoba/Canada.
Chicatalk
As part of a division of assets, I was required to split my company pension and transfer 50% to my ex-common-law wife. Can I deduct this from my income tax?
As part of a division of assets, I was required to split my company pension and transfer 50% to my ex-common-law wife. Can I deduct this from my income tax?
also, keep in mind this is in Manitoba/Canada.
Chicatalk
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Comments
No you cannot deduct this anywhere on your tax return as this is a division of assets not an income issue. When she begins to draw on the pension then she will be liable for taxes payable at her marginal rate and you will be responsible for yours.
You need to read your decree. Sometimes the decrees will state that this is taxable income to the ex-spouse. if this is the case you can take it as an alimony deduction, but you should keep handy a stamped, signed and complete copy of the decree, proof of payment and who you paid it to. You should also keep a copy of your Qualified Domestic Relations Order.