Smart Tax Saving Tips: Difference between revisions
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Revision as of 11:16, 25 February 2025
S is for SPLIT. Income splitting is a strategy that involves transferring a portion of revenue from someone is actually in a high tax bracket to a person who is from 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 possible to transfer income to someone in a lower tax bracket, it should be done. If major Porn between tax rates is 20% your own family will save $200 for every $1,000 transferred to the "lower rate" family member.
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