Business Administration - Financial Planning RFC122 Lecture Notes - Lecture 4: Fair Market Value, Income Splitting, Progressive Tax
25 Oct 2016
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Document Summary
Chapter 5 income splitting: split into ,000 and ,000, progressive tax system, ,000 25% tax save a couple thousand, split taxes to pay less taxes, unless illegal, you can split, if illegal you pay taxes on all ,000. Ontario top highest combined federal and provincial tax rate approx. 46. 6: each province varies depending on provincial tax rate. Rules that prevent income splitting: attribution rule. If the transfer of the property at fair market value. Lend money or pay but they have to pay for interest payments before the end of next year jan 30. Interest or dividend income get attributed back to the parent. Capital gain/capital gain will not attribute back to the parent. If not the whole amount will be attributed back to the original person. You go to the boss, and rather than paying you 100,000, you ask to pay you. 50,000 and payroll your wife 50,000 to pay less taxes (illegal)
