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Budget 2019 – Poor wording requires 2 ex-spouses within 5 years for Home Buyers Plan

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This is one of those rare times I hope I am wrong in my interpretation, and look forward to being proven wrong by my professional colleagues.

On March 19, 2019 the federal government tabled its election-year budget. One of the newest and strangest provisions is the ability for people going through a separation or divorce to potentially have access to their RRSP under the Home Buyers Plan.

Now in my article and podcast entitled: “Escape Room – The NEW Small Business Tax Game – Family Edition” with respect to the Tax On Split Income (TOSI) rules, I made a tongue in cheek argument that people will be better off if they split, because then the TOSI rules wonā€™t apply.

In keeping with the divorce theme, beginning in the year of hindsight, 2020, the federal government is giving you an incentive to split up and get your own place.

However, there are a few hoops:

On page 402 of the budget, under new paragraph 146.01(2.1)(a), at the time of your RRSP withdrawal under the Home Buyers Plan, you must make sure that:

  • – the home you are buying is not the current home you are living in and you are disposing of the interest in the current home within two years; or
  • – you are buying out your former spouse in your current home; and

you need to:

  • be living separate and apart from your spouse or common-law partner;
  • have been living separate and apart for a period of at least 90 days (markdown October 3, 2019 on the calendar),
  • began living separate and apart from your spouse or common-law partner, this year, or any time in the previous 4 years (ok, you donā€™t have to wait for October); and…

…here is where the tabled proposed legislation gets messy.

Proposed subparagraph 146.01(2.1)(a)(ii) refers to where the individual

  • wouldnā€™t be entitled to the home buyers plan because of living with a previous spouse in the past 4 years that isnā€™t the current spouse they are separating from

“(ii) in the absence of this subsection, the individual would not have a regular eligible amount because of the application of paragraph (f) of that definition in respect of a spouse or common-law partner other than the spouse referred to in clauses (i)(A) to (C), andā€¦”

The problem with the wording of this provision, is that it is written in the affirmative by the legislators using the word ā€œandā€. This means, you must be able to answer ā€œtrueā€ to all the tests for the entire paragraph to apply.

The way I read this, the only way to answer ā€œtrueā€ to this subparagraph is if you have a second spouse (ie: spouse other than the spouse referred to) that you shared a home with and you split from in the past four years.

If you have a second spouse that you shared a home with in the past four years, then ā€œparagraph (f)ā€ in the definition of ā€œregular eligible amountā€ would apply and the answer would be ā€œtrueā€.

If the answer is “true” you can then get access to your RRSP Home Buyers Plan.

If you donā€™t have a second spouse then, even though “paragraph (f)” might be met, the phrase ā€œspouse other than the spouse referred toā€ would not be met, and therefore the answer would be ā€œfalseā€.

This would, in turn, cause the entire logic test of the provision to be ā€œfalseā€ and so you would not be able to take out a ā€œregular eligible amountā€ from your RRSP for the Home Buyers plan because you do not meet the provisions.

If my interpretation is correct then I would really be curious as to what part of the economy they are trying to stimulate.

In my opinion the legislation could be fixed with a simple edit:

“(ii) in the absence of this subsection, the individual would not have a regular eligible amount because of the application of paragraph (f) of that definition in respect of:

(A) a spouse or common-law partner; or

(B) a spouse or common-law partner other than the spouse referred to in clauses (i)(A) to (C); and…”


Cory G. Litzenberger, CPA, CMA, CFP, C.Mgr is the President & Founder of CGL Strategic Business & Tax Advisors; you can find out more about Coryā€™s biography at http://www.CGLtax.ca/Litzenberger-Cory.html

CEO | Director CGL Tax Professional Corporation With the Income Tax Act always by his side on his smart-phone, Cory has taken tax-nerd to a whole other level. His background in strategic planning, tax-efficient corporate reorganizations, business management, and financial planning bring a well-rounded approach to assist private corporations and their owners increase their wealth through the strategies that work best for them. An entrepreneur himself, Cory started CGL with the idea that he wanted to help clients adapt to the ever-changing tax and economic environment and increase their wealth through optimizing the use of tax legislation coupled with strategic business planning and financial analysis. His relaxed blue-collar approach in a traditionally white-collar industry can raise a few eyebrows, but in his own words: ā€œPeople donā€™t pay me for my looks. My modeling career ended at birth.ā€ More info: https://CGLtax.ca/Litzenberger-Cory.html

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Catherine Herridge

How ‘Woke’ Broke The FB

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Ā Author Ā Catherine Herridge

We Obtain Internal FBI DEI Guide On Managing Unconscious Bias

TOP LINE Ā 
An internal FBI inclusivity ā€œGuide,ā€ obtained by our investigative team, counseled agents on ā€œWays to Manage Your Unconscious Bias,ā€ ā€œMicro-Inequitiesā€ and ā€œHow to Improve Your Inclusive Intelligence.ā€
ā€œThe New IQ: Your Guide to Sustaining Inclusive Habits in the Workplaceā€ was widely shared in mid-2020 and includes nine ā€œtipsā€ to counter unconscious bias.
Separately, as part of our investigation, recently retired FBI agents said they saw, firsthand, how law enforcement capabilities were compromised because merit took a backseat to DEI priorities.
They dubbed the legendary FBI Quantico Training Academy the ā€œParticipation Academyā€ because of headquarterā€™s pressure to ā€œpush throughā€ poorly performing candidates to meet their DEI objectives.
The retired agents said FBI Director Patel inherits a workforce where standards dropped impacting physical fitness of agents, their firearms skills as well as professional qualifications, putting the FBI mission and safety at risk.
DEEP DIVE
More than a half dozen recently retired FBI agents agreed to speak with me on a confidential basis.Ā  They said they feared retaliation for describing their experiences with the FBIā€™s DEI initiatives. While fiercely loyal to the bureau, they said they felt compelled to come forward, citing a dangerous reduction in standards that they believe endanger agents and the public.
The group of retired agents was diverse.Ā  It included male, female, Asian, Black and White agents from field offices in different parts of the country.Ā  Their work experience covered multiple facets of the recruitment and training process. Everyone I spoke with offered a first hand account of DEIā€™s impact.
FBI DEI Guide Defines ā€œUnconscious Biasā€
The retired agents told me they valued diversity because it could strengthen the FBI mission but in recent years, the agents said FBI leadership took the attitude the bureau was ā€œtoo White.ā€ Ā  The decline, they said, began under FBI Director Mueller who made the DC Headquarters his focus.Ā  They saidĀ it accelerated under FBI Director Comey. They blamed Director Wray for standing by as the ā€œtrain wreck happened.ā€
ā€œWays To Manage Your Unconscious Biasā€
I was told that the physical fitness performance of candidates declined. The requirements include timed sit-ups (1 minute), timed 300-m sprint, untimed push-up maximum and timed 1.5 mile run.
The retired agents described recruits who had an ā€œattitude problem.ā€ The recruits would quit the long distance run or claim injuries if they thought they would not pass a requirement. Ā  The number of successfully completed push ups was routinely low because many recruits didnā€™t have the skill or strength to follow the required protocol (i.e bad form, not low enough.)
What I learned about firearms training was also concerning.Ā  I was told some recruits lacked the ā€œmental toughnessā€ to competently handle guns. Other candidates had documented mental health issues.Ā  While their performance was poor, there was a ā€œpush them through Quantico attitude.ā€
The backbone of FBI investigations is a witness interview summary known as a ā€œ302.ā€Ā  In some cases, new agents lacked basic writing skills to complete a 302, in part, because work experience requirements had been relaxed.Ā  Once poor performing recruits were ā€œpushed through Quantico,ā€ the hope was that FBI Field Offices would fix them.
While the retired agents said diversity was valuable to the bureau it had taken precedence over merit. They said they looked up to the FBI when they joined and are hopeful Director Patel can restore and reverse this decline.
These retired FBI agents are solution oriented and respectfully asked if Director Patel would be willing to meet with them because they understand where the change needs to happen internally.
Describing how ā€œwoke broke the FBI,ā€ one of the agents shared the wrenching personal decision to discourage their child from following in their professional footsteps. Something that would have been inconceivable during most of their time with the Bureau.
FBI spokesman Ben Williamson said, ā€œā€œDirector Patelā€™s new FBI will be an entirely mission focused institution ā€” working every day to get criminals off our streets, keep the American people safe, and let good agents be good agents. We are aggressively working to abide by any Presidential directive to root out politically motivated, social engineering projects ā€” they have zero home here and never will as long as Director Patel is at the helm.ā€

We are making this exclusive reporting free.Ā Ā 

The full FBI DEI workplace guide is available to our subscribers.

Catherine Herridge Reports

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illegal immigration

Court attempts to halt Trump deportations, El Salvador president says ‘too late’

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From The Center Square

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A class action lawsuit was filed on Saturday against the Trump administration after President Donald Trump signed anĀ executive orderĀ invoking the Enemy Aliens Act to target, arrest and remove violent Venezuelan prison gang members, Tren de Aragua (TdA), from the U.S.

The lawsuit was filed by the American Civil Liberties Union Foundation on behalf of five Venezuelans illegally in the country who were detained in Texas and New York. The lawsuit was filed in U.S. District Court for the District of Columbia.

On Saturday, nearly 300 violent illegal foreign nationals were removed from the U.S. and arrived in El Salvador with the cooperation of El Salvadoran president Nayib Bukele after reaching an agreement with Secretary of State Marco Rubio.

ā€œThe first 238 members of the Venezuelan criminal organization, Tren de Aragua, arrived in our country,ā€ BukeleĀ said in a postĀ on X. ā€œThey were immediately transferred to CECOT, the Terrorism Confinement Center, for a period of one year (renewable).ā€

El Salvador also received 23 MS-13 gang members from the U.S. who were wanted by Salvadoran authorities, Bukele said. They include two ringleaders, one of whom ā€œis a member of the criminal organizationā€™s highest structure.ā€ Those sent to El Salvador by the U.S. will help Bukeleā€™s government ā€œfinalize intelligence gathering and go after the last remnants of MS-13, including its former and new members, money, weapons, drugs, hideouts, collaborators and sponsors.

ā€œAs always, we continue advancing in the fight against organized crime. But this time, we are also helping our allies, making our prison system self-sustainable, and obtaining vital intelligence to make our country an even safer place. All in a single action. May God bless El Salvador, and may God bless the United States,ā€ he said.

The U.S. government is paying a small fee to detain them, Bukele said, and the prison is also making money because it requires inmates to work. These additional inmates, ā€œcombined with the production already being generated by more than 40,000 inmates engaged in various workshops and labor under the Zero Idleness program, will help make our prison system self-sustainable,ā€ he said, noting that it costs $200 million a year to maintain.

In response, Rubio thanked Bukele saying, ā€œEl Salvador has agreed to hold the violent criminals ā€œin their very good jails at a fair price that will also save our taxpayer dollars. President Nayib Bukele is not only the strongest security leader in our region, heā€™s also a great friend of the U.S.ā€

In an emergency hearing held on Saturday, a federal judge ruled that deportations of violent Venezuelans be temporarily halted and those who were illegally in the country and already removed be returned. The ACLU said the order blocked the administration ā€œfrom deporting anyone under the Alien Enemies Act while the case proceeds. Flights carrying Venezuelan immigrants the DHS attempted to deport have been ordered to turn around and return to the U.S.ā€

A U.S. federal judge has no jurisdiction over foreign governments.

In response, BukeleĀ postedĀ on X, ā€œOopsie ā€¦ Too late,ā€ with a laughing emoji.

Bukele also posted videos and pictures of them arriving in El Salvador in handcuffs. The video shows them being met by El Salvadoran military wearing riot gear and transported in armored vehicles to CECOT. The videos depict El Salvadoran officials lifting up their shirts to show tattoos of gang member affiliation, officials shaving the heads of kneeling inmates and their admittance as CECOT inmates.

Cooperation between the U.S. and El Salvador expanded under Trump and Rubio, representing a reversal of Biden administration policy that used taxpayer money and planes to transport illegal foreign nationals into the U.S.

Trump has been aggressively targeting of TdA after a recordĀ more than 1 million VenezuelansĀ illegally entered the U.S. under the Biden administration, including TdA members expanding operations in at least 22 states, The Center Square first reported.

Under the Trump administration, Venezuelan repatriation flights also began, paid for by the Venezuelan government, negotiated by the Trump administration, The Center SquareĀ reported.

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