Annual Taxes - Humor In The Drudgery: Difference between revisions
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Revision as of 16:49, 28 July 2026
S is for SPLIT. Income splitting is a strategy that involves transferring a portion of revenue from someone who is in a high tax bracket to a person who is in a lower tax area. 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 individual is either your spouse or common-law spouse, but it could even be your children. Whenever it is easy to transfer income to someone in a lower tax bracket, it must be done. If major cibai between tax rates is 20% your own family will save $200 for every $1,000 transferred for the "lower rate" relation.
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