LTD, CPPD and investment income

Hi there, I’m currently receiving LTD from my insurance company and CPPD from the government.

I also own some stocks which I buy and sell sometimes which result in substantial stock related capital gains income and dividend income. How does these non-employment incomes impact my LTD benefits from the insurer and CPPD?

Specifically, will CPPD get information from the CRA regarding my investment income and deny me my benefits because of it?

Thanks.

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CPPD only considers work income so that shouldn’t be a problem.
It shouldn’t affect your LTD unless you are doing enough buying and selling that it could be interpreted as you being able to do a job (depends on your policy if “any” job is even an issue).

Bottom line is don’t worry about it, CPPD doesn’t talk to the CRA.

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I was curious about it too. I know that investment income doesn’t affect neither LTD nor CPPD. But If you receive a huge amount in capital gains it will show on your tax return. As we know CRA sends any income earned to CPP office. So my questions are: Will CPP office inquire on the nature of the high income you received? Do you need to provide them with a proof that the income comes from an investment? And will it make CPP office doubt in your ability to work if you make a lot of money on investments?

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It’s been years since I had any capital gains.

I think it has a different line on the tax return so maybe the CRA doesn’t even pass that line to Service Canada. Maybe they pass the total income line.
I would phone Service Canada.
Another option is to ask the people at retirehappy.ca, they might know.

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If you made $12,000 a year on CPPD and $50,000 a year on investments then total income will be $52,000. I assume CRA will send this data to CPP office. What are they going to do? I don’t think CRA is going to explain that $50,000 is an investment income. Or will they?

We definitely need to call CRA and see what they normally do.

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I also do some trading but I am not going to worry about it. I had these stocks before I got ill. I have to take profits from time to time.

Maybe CRA only passes the employment income.
I think they are separate lines on the tax return.
I would phone CRA and ask if they report capital gains to Service Canada or just employment income.

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Hope so.

Good idea. I’ll call CRA.

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Please do and share your findings, thanks

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Do you get t4s for capital gains?

Ok.

Most capital gains and capital losses reported on Schedule 3 come from amounts shown on the following information slips:

T3, Statement of Trust Income Allocations and Designations
T4PS, Statement of Employee Profit-Sharing Plan Allocations and Payments
T5, Statement of Investment Income
T5008, Statement of Securities Transactions
T5013, Statement of Partnership Income

I mostly used T5 and T5008 for my tax return. You can find them in statements section in your trading or bank account.

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anything on this update elaine?

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Oh, nothing yet. Didn’t have a chance to call them yet. I’ll try to find out soon.

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