To get the maximum benefit, you must have lived in Canada for at least 40 years from the age of 18. Plus: Questions about federal support for lessees.
Article author:
Paul Delean • Special to Montreal Gazette
Last week's columnWith the Old Age Security (OAS) enhancements, readers have generated further questions on this topic. Here's what they wanted to know:
Q: I am a retired Canadian in Ecuador. The government recently announced an increase in all Canadians receiving OAS payments. Do they apply to Canadians who have retired outside Canada or only to those who live in Canada?
A:In general, recipients of OAS traveling to other countries are entitled to the same amount as if they were still living here. Depending on where you are moving, you also have the option to automatically convert your payments to your local currency.
However, to maximize the benefits of OAS at age 65, live in Canada for at least 40 years from age 18. Must be. The rules are different because I lived here and moved within 20 years.
"OAS pensioners who do not meet the 20-year requirement after leaving Canada are entitled to OAS pension payments for the month of departure and the next 6 months, but pay beyond that point. Will not continue, "says Canada's employment and social development.
However, if the individual returns to reside in Canada, OAS payments can be resumed.
Additional IncomeSupplement (GIS), an additional boost for low-income seniors, will be suspended for six months after the recipient resides outside Canada.
"The six-month grace period guarantees that low-income pensioners who only temporarily leave Canada will continue to receive GIS and allowances," the agency said. They too can be undone when the individual returns.
Q: My friend will be 75 years old in September. She wonders if OAS will increase by 10% in October or only in July 2023. Will everyone over the age of 75 receive the same amount?
A: A 10% increase in OAS for Canadians over the age of 75 will be effective this month, but is ongoing. This applies the month after someone turns 75, or October if they are friends.
All recipients grow at the same rate, but not necessarily the same amount. People who haven't lived in Canada for more than 18 to 40 years are less profitable than those who live. Seniors over the age of 65 who have waited to start collecting OAS will earn more than those who received it as soon as possible. Elderly people with higher tax rates may have some or all of their OAS eligibility revoked.
Q: Treasury Minister Chrystia Freeland was recently reported to have stated that the (federal) government would provide some special support to lessees. How do you qualify?
A:I don't know yet. The government said it would pay $ 500 a temporary "affordable housing payment" to nearly one million low-income Canadians who are renters in 2022, but so far the payment details and No schedule is provided.
How the government will establish in 2022 that potential recipients are actually renters, or who have income below a certain threshold It will be interesting to see if you will only send a check to.
Q: Recently, a child or spouse living in a house owned by a spouse or parent means an exemption from transfer income tax on the property even if the house is not the owner. I wrote that there is a possibility of doing it. Dwelling.
What about the owner's parents who live in the upper duplex and the owner is in the lower duplex? If the upper is sold, does the relationship take into account the capital gains exemption?
A:Duplex is, by definition, two dwellings. If you own a building, you cannot occupy both units at once, so only one person is subject to capital gains tax exemption when selling a building. If the parent owns a higher duplex, both units are exempt from tax.
The Montreal Gazette is looking for readers' questions on tax, investment and personal finance issues. If you have any questions you would like to address, please email Paul Delean (gazpersonalfinance@hotmail.com
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Paul Delean: OldAgeSecurity check is getting bigger
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Details Paul Click here for Delean's column:
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