# Who should fill T5 when saving account is joint



## gibor365

My mom is coming to Canada and doesn't speak English. 
I was thinking to open joint saving account with my mom. When T5 will come, can my mom to claim it as an income on tax declaration? or should we split 50/50?


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## OhGreatGuru

In principal in joint accounts the income is attributal in proportion to each person's contributions to the account. In practice, if you are both contributing to it, a 50/50 split will not raise any questions unless it is an unusually large amount of money.

If it is entirely your mother's money, and you have records to prove it, there is no problem with attributing all the income to her. If CRA asks, you tell them the account is joint for administrative convenience and estate planning purposes only, but you do not have "beneficial ownership" from a taxation point of view.


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## Homerhomer

gibor said:


> My mom is coming to Canada and doesn't speak English.
> I was thinking to open joint saving account with my mom. When T5 will come, can my mom to claim it as an income on tax declaration? or should we split 50/50?


Consider opening bank account in her name only and if you need to have access to the account get power of attorney. T5 will be in her name only.


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## gibor365

The point is that all money - my mom savings, I just want to be able to communicate with bank in her name.... I know that in brokerage account I can have trading authority, but here I'm talking about regular checking/saving account...
This is why we wanted to open joint, but apply T5 only to my mom (as she practically doesn't have any income).... just wondering if CRA can cause me a problem...


How do I get "power of attorney"?


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## Homerhomer

gibor said:


> How do I get "power of attorney"?


Just go to the bank with your mom, you just need to sign few papers, they will explain it to you, very easy and common process.


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## OhGreatGuru

Homerhomer said:


> Just go to the bank with your mom, you just need to sign few papers, they will explain it to you, very easy and common process.


It does sound like POA may be the more appropriate instrument (though joint acct. would work too.) But if Mom has neither English nor French, how would they know that she knew what she was signing? You may have to inquire at the bank for a branch or teller who speaks your mother's language to witness the POA.


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## kcowan

Joint account will avoid probate as long as the proceeds are supposed to go to the joint account holder upon death. Should you predecease her, it will all revert back to her anyway.

Getting a POA will require that she understands what she is signing. And probate will apply.


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## gibor365

I found on CIBC website:

"Q. I have a joint investment account with my spouse. We received a T5 slip that only reflects my spouse's Social Insurance Number (SIN). We want to have the T5 amended to reflect my SIN. Can it be changed?

A. Unfortunately, no. There is only enough space on the T5 for one SIN. However, CRA recognizes that more than one person can claim the income provided that in box 23 on the T5 the code is "2", which indicates a joint account. If this code appears, the income may be claimed by either or both of the joint accountholders."

http://www.investorsedge.cibc.com/ie/focus/ready-to-file.html#T5

So, for spouses anyone can file, question about me and mom


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## cardhu

gibor said:


> So, for spouses anyone can file …


Not exactly … the income must still be reported by whoever it attributes to … what CIBC is saying is that with a joint account, it doesn’t matter whose SIN is on the T5. 


> _question about me and mom _


The same principle applies … if it’s a joint account and the T5 properly identifies it as such, then it doesn’t matter whose SIN appears on it, the income would be reported by whoever it properly belongs to … the key difference between this scenario and the spousal scenario is the determination of who the income “belongs to” … the attribution rules do apply between spouses, but don’t apply between a parent and their adult child, so its not quite as clear-cut as establishing who provided the money. Still, if the account is funded solely by your mom’s money and is only made joint as an administrative convenience, then you’d have a pretty good argument for having her report all of the income from that account.


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## gibor365

cardhu said:


> Not exactly … the income must still be reported by whoever it attributes to … what CIBC is saying is that with a joint account, it doesn’t matter whose SIN is on the T5.
> 
> t.


not only ... they also saying that if code 2 appear in box 23 -> "the income may be claimed by either or both of the joint accountholders"

BTW, what is it "attribution rules"?


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## OhGreatGuru

gibor said:


> ...
> 
> BTW, what is it "attribution rules"?


CRA's rules, concerning whom income must be "attributed" to.


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