Donate Child Support Calculator
Skip navigation

Reducing taxable income to increase/ decrease child support

Add Topic
Two simple questions:

Can my ex. reduce her taxable by declaring a loss on an investment property in order to get more child support? I believe the answer is yes..?

If she can do that, can I also do the same to reduce my income through a investment property loss to pay her less child support or will CSA descriminate against the payer…?
Net investment loss will be added back for both of you.   Both of you can claim it on your taxes and thus pay less taxes but your adjusted taxable income for C$ will mean that they will add back the Net loss. 
But CSA calculates child support on taxable income don't they? Negative gearing decreases taxable income doesn't it? This is clearly my ex's plan as she has just bought an investment property and declared to CSA her income will decrease this year due to this.
From "the Guide"

2.4.4: Child support income
Version 2.11, Last updated 1 July 2011 8:00am

The description of this income component at section 43(1)(d) refers to the Income Tax Assessment Act 1997, which includes this definition of the term at section 995.1 of that Act:

    "total net investment loss" of an individual for an income year means the sum of:

    (a) the amount (if any) by which the individual's deductions for the income year that are attributable to financial investments exceed the individual's gross income for that year from those investments; and

    (b) the amount (if any) by which the individual's deductions for the income year that are attributable to rental property exceed the individual's gross income for that year from rental property.

Financial investments include shares, managed investment schemes, forestry managed investment schemes, and a right or option in respect of any such investment.

In calculating the loss amount relevant to financial investments the gross income and related deductions are considered to determine if there is a net financial investment loss. A similar exercise is undertaken to identify if there is a net rental property loss. Both loss amounts (if any) are then added together to identify the total net investment loss.

Note: Prior to the 2009/2010 financial year only net losses incurred in relation to rental property investments were included when calculating an ATI.


So she can make an Estimate and change her income but when she files it should be added back.   But I guess if depends who is the Payer and Payee
1 guest and 0 members have just viewed this.

Recent Tweets