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Email this7:15 pm
February 9, 2019
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A friend of mine recently sold her condo and I asked for help with how to invest the proceeds for monthly income. Thanks for all of your suggestions. She went with GICs and got decent rates (but not the best as we here, get) from MANULIFE. They were better than BMO, VANCITY or WESTMINSTER SAVINGS. He is sort of local and has 11 FIs to use to keep all funds under $100,000.
The advisor also suggested that she remains topped up on TFSA from RRIF funds (or any other fund) and to deplete her RRIF (approx. $20,000) as quickly as possible “if” she can remain at the lowest tax bracket. Best for her TFSA and estate planning. Once we see the dust settle we can figure out how more she can remove from her RRIF. We all agree.
He also mentioned that some of her retirement home expenses could be tax deductible.
She has is 92 and has:
Heart issues.
Lung issues.
Back issues.
Wandering leg issue....lack of control and strength
And a Disabled Parking Pass
She is in a retirement home. There is a nurse on duty and I assume first aid on duty during evening/night. Decent suite with one bedroom at $4100 a month. She only has to do her own laundry. Food, snacks and activities all included. She only has to pay for internet and home phone while Shaw TV is included. She also has fall protection while in building, provided. Fall protection is a direct link to nurse on duty. Her main reason to move was she no longer had the desire or strength to cook or keep house even though she had housekeeping services in her condo. She no longer drives. She does not require extra assistance for bathing, medications etc. Her work load is much more manageable at the retirement home. Life is better.
So question is........are there any tax deductions? Apply at CRA or doctors office?
7:53 pm
October 21, 2013
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I'd say, not much.
There will be whatever you can get under "medical expenses" with CRA.
And she might at some point qualify for the Disability Tax Credit, but it doesn't sound like she qualifies yet, although she might. The criteria are pretty strict. Requires doctor to fill out a form.
I don't know if there is anything provincially as I don't live in BC.
Actually, I'm not sure why she ought to get any special tax relief unless it's for the portion of her rent that goes for nursing, which wouldn't be very much, and probably hasn't been calculated by the home on a per person basis.
The gizmo for falls should be a medical expense, but if it's included in her rent, it might be difficult to parse out.
You need to read the Interpretation Bulletin(s) etc in regards to Medical Expenses to see what-all might qualify.
It's a fairly extensive list. Many of the things they do allow require doctor's prescription.
Anything that requires a doctor's cooperation should be pursued right away as there is no back-dating. HOwever, the Disability Tax Credit used to be set up so that it could be retroactive when it was first introduced. I'm not sure if that is still true.
Most of her expenses are essentially for rent and food, and those don't get any special tax treatment. She's not poor, so doesn't need any income support.
Perhaps others have some better ideas.
Surprised she went with ManuLife. As far as I remember, everyone on this forum who has used them has left them, and with a bad feeling usually.
Really, if she wanted a better financial result, the way to go is not to try to get more out of the government, but to buy better GICs. She probably gave up several thousand dollars annually by having 11 inferior FIs at 100K each more or less, as I'm sure you know. I can't get my 98-yr-old to budge from the Big Five!
8:17 pm
February 9, 2019
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Surprised she went with ManuLife. As far as I remember, everyone on this forum who has used them has left them, and with a bad feeling usually.
I “was” with them too. But I decided I could do much better myself through this web site many many years ago. And have done so!
Really, if she wanted a better financial result, the way to go is not to try to get more out of the government, but to buy better GICs. She probably gave up several thousand dollars annually by having 11 inferior FIs at 100K each more or less, as I'm sure you know. I can't get my 98-yr-old to budge from the Big Five.
Yes was a convenience thing, trust and a safe bet. There is no way she would have gone the way we did. But she agreed on the same principles that I suggested.
Sorry all goofed up the block quote keeps adding automatically and I have tried to edit 5 times and gave up.
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