RSM324H1 Chapter Notes - Chapter 9: Foreign Tax Credit, Phosphoribosyl Pyrophosphate, Income Splitting
22 Feb 2017
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Chapter 9 other income, other deductions, and special rules for completing net income for tax. Subsequent income received by the spouse on transferred property must be included in the net income for tax purposes of the original owner for as long as the couple remains married. The process of allocating subsequent income back to the original owner is (cid:396)efe(cid:396)(cid:396)ed to as (cid:862)att(cid:396)i(cid:271)utio(cid:374)(cid:863) If interest-free loans are made to a spouse, any income earned by the spouse on the loaned funds is attributed to the lender. The attribution rules do not apply if property is transferred to a spouse in a (cid:373)a(cid:374)(cid:374)e(cid:396) e(cid:395)uivale(cid:374)t to a(cid:374) a(cid:396)(cid:373)"s-length transfer. In addition, the spouse who made the transfer must recognize the related gain on the transfer if the transfer value > cost amount. The attribution rules do not apply when an individual transfers money to a tfsa owned by a spouse: property transferred to a minor child.
