ADMS 3541 Study Guide - Final Guide: Mimus, P Money, Dividend Tax

• School: York University
• Department: Administrative Studies
• Course: ADMS 3541
• Professor: vz

Document Summary

Income deferral: defer paying tax on income to future time periods. If can"t use income for consumption, then may be able to defer tax the pv of paying tax later rather than now is beneficial. If the amount set aside also compounds at the (higher) before-tax rate, you get a second benefit: deferred income plan. Contributions & investment earning grow on a tax deferred basis. Ipp: only government grant/bond deposits & investment earnings grow on a tax deferred basis. Income splitting: allocate income within a family unit to minimize the overall tax liability in a given period. If different members of the family have different marginal tax rates, beneficial to transfer income to the one (s) with lower rate: most commonly between spouses, also between parents and children. Income attribution: income on a gift added back to a donor"s income and taxed as his/her rate, even though someone else owns the assets: attribution rules, attribution for income & capital gains.