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How to minimize OAS clawback

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It says you are using 2017 numbers for the threshold and maximum, but are those not 2016 numbers?
should it be $74,788 & 121,028? for 2017

Friday, Oct 27, 2017 at 12:35 pm Reply


Thanks Chris. The article is updated with 2016 and 2017 numbers.

Friday, Oct 27, 2017 at 3:31 pm

Ken Allred

Is OAS automatically reinstated if a persons taxable income goes down below the OAS clawback level of $73,756?

Wednesday, Oct 4, 2017 at 4:30 pm Reply


From Frank Di Pietro (colleague of the author): “Yes, assuming the individual files his or her tax return on time, and on an annual basis. The OAS payments are on a July to June cycle. Therefore, payments from July 2017 to June 2018 are based on the income reported on the 2016 tax filings. So, if the individual’s income drops in 2017 below the clawback threshold, then the OAS payments will reflect this beginning in July 2018 and continue until June 2019 and the individual would receive the full OAS benefit.”

Thursday, Oct 5, 2017 at 10:16 am

Mike Kaine

I’ve been wondering if leverage could work to reduce the claw back. If you borrowed $100,000 at 3% and invested in corporate class investments with a 1% advisor fee, could you have a $4000 deduction? With the corporate class you’d have the potential for a capital gain down the road but in the mean time you’d save the claw back.

Monday, Jun 19, 2017 at 12:43 pm Reply


Hi Mike,

Please see the response from author Jacqueline Power. Note that this response is not meant to be advice and you should consult a qualified tax professional to assist with your specific situation. – the editors (1/2)

Monday, Jun 19, 2017 at 3:20 pm


(2/2) As per the caveats above:

“Generally, the interest paid on money borrowed for investment purposes if used to try to earn investment income, including interest and dividends would be a deductible interest expense. With respect to the 1% advisor fee the criteria outlined below would need to be satisfied in order to write off the advisor fee.

• Section 20(1)(bb) of the Income Tax Act (ITA) provides a tax deduction for “amounts other than a commission paid by the taxpayer in the year to a person
– i) for advice as to the advisability of purchasing or selling a specific share or security of the taxpayer, or;
– ii) for services in respect of the administration or management of shares or securities of the taxpayer”

If these apply and both the interest and advisor fees can be deducted then the individual is correct and it would result in a $4,000 deduction when calculating net income.”

Monday, Jun 19, 2017 at 3:21 pm