Paying Taxes Can Tax The Best Of Us: Difference between revisions
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Revision as of 19:04, 11 August 2026
S is for SPLIT. Income splitting is a strategy that involves transferring a portion of greenbacks from someone which in a high tax bracket to a person who is in a lower tax range. It may even be possible to reduce the tax on the transferred income to zero if this person, doesn't have got other taxable income. Normally, the other person is either your spouse or common-law spouse, but it can also be your children. Whenever it is easy to transfer income to a person in a lower tax bracket, it should be done. If primary between tax rates is 20% then your family will save $200 for every $1,000 transferred for the "lower rate" significant other.
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