OAS Clawback not being calculated

T1
1

I am working with Version 12.0.49200.0. I entered a significant capital gain from a cottage disposal as personal use property which brings net income to $104,600. OAS clawback is not being calculated.

On reviewing the Social Benefits Repayment worksheet, it appears that the taxable capital gain is being characterized as RDSP income from line 12500, whereas capital gains come from line 12700.

For tax planning, my workaround is to override line 9 on chart 2 to reduce RDSP income to 0.

Just wanted to make people aware of potential issue.

2

I tried to replicate that, the OAS claw back works for me

Same version

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3

I concur with @dan.chun …
I also reproduced this using the same Taxcycle version. The Taxable Capital Gain is properly recorded on Line 12700, and the OAS clawback is also recorded correctly.

Perhaps you might need to go back and recheck your entries, or, try to enter the sale of the cottage by itself on a NEW tax return to help problem solve the issue.

4

After rechecking the entries and submitting the potential error to Taxcycle, staff identified that I had included the capital gain on the mortgage foreclosure line as opposed to the personal use property line. In the case of mortgage foreclosures, the capital gain is not included for calculating OAS clawback.

Thanks to Taxcycle for correcting the loose nut behind the keyboard.

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