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Email this2:01 pm
October 29, 2017
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Just had a quick question. In a joint account, does the tax receipt for interest capital gains only go to the primary holder or does the secondary holder also have to declare part of that income? Thanks everyone.
EDIT: that’s non-spouse holders.
2:12 pm
October 29, 2017
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Okay, did some quick research. It’s proportional to holders contributions. So it looks like a joint account can’t be used to offload capital gains from a secondary holder.
9:59 am
September 11, 2013
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Far as I know tax receipt only shows SIN of primary, may show primary or both names, fyi.
2:15 pm
October 27, 2013
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It is up to the account holders to properly attribute taxable income proportionately to the capital contributed by each joint account holder.... regardless of what SINs are on the tax slip and/or associated with the account. One cannot transfer cap gains or losses to another taxpayer.
10:29 pm
October 29, 2017
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AltaRed said
It is up to the account holders to properly attribute taxable income proportionately to the capital contributed by each joint account holder.... regardless of what SINs are on the tax slip and/or associated with the account. One cannot transfer cap gains or losses to another taxpayer.
Yes, that’s what I discovered in my research. I wanted to pass the capital gains by not being the primary holder, but the tax reporting has to be proportional to contributions and I would be 100%, so it changes nothing! I did find it interesting that the tax receipt is only sent to the primary holder though,
8:26 am
September 11, 2013
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My personal experience over the years is you're more apt to be flagged by CRA for questioning if income is reported by other than the person whose SIN is on the T5, and often a year or so later. Just be prepared for that.
8:55 am
March 14, 2023
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Bill said
My personal experience over the years is you're more apt to be flagged by CRA for questioning if income is reported by other than the person whose SIN is on the T5, and often a year or so later. Just be prepared for that.
Is that experience with 50:50 reporting, or when assigning all income to the secondary owner(s)?
8:56 am
October 27, 2013
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Bill said
My personal experience over the years is you're more apt to be flagged by CRA for questioning if income is reported by other than the person whose SIN is on the T5, and often a year or so later. Just be prepared for that.
That has never happened in all my years of proper and proportional splitting along attribution lines....as required in the Income Tax Act. Never play fast and loose with income attribution, especially for larger sums. This subject has been discussed to death in many forums.
3:44 pm
September 11, 2013
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Wrayzor, in my case it was whenever 100% income was assigned to secondary owner whose SIN did not show on the T5 at all.
9:03 pm
October 29, 2017
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Bill said
Wrayzor, in my case it was whenever 100% income was assigned to secondary owner whose SIN did not show on the T5 at all.
I suppose that the main contributor should be primary then, especially if it’s 100%.
3:22 am
September 11, 2013
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Yes, if you don't want to have to explain to CRA what's going on if you're reporting it 100% on secondary's tax return.
If you're splitting it tax-wise then it doesn't matter who is primary or secondary.
In my experience CRA has never asked for proof of anything, as soon as they're assured the income in total has been reported by the joint holders involved they've accepted the allocation, even if it's 100% by one joint holder. In my experience.
7:47 am
October 27, 2013
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That is a lot of record keeping, to keep attribution correct. It would be so much easier to not comingle funds like that, especially in those odd situations where the secondary owns all, or the majority, of the balacne. Have 2 accounts with each being primary of one account and holding only that individual's funds in that account. I was circa 35 years old when I got wise to doing things that way.
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