MGAC50H3 Chapter Notes - Chapter 6: Dividend Tax, Income Splitting
Document Summary
The bond would earn ,000 x 3% = ,000. Loan: since interest at a commercial rate is not paid, attribution would apply. Her husband would not report the ,000, but instead donna would report it on her return. Since this is a gift for no consideration, attribution would apply. ,000, but instead donna would report it on her return. Result: she pays the tax and her husband keeps the ,000. Loan: since interest at a commercial rate is not paid and her daughter is a minor, attribution would apply. Since this is a gift for no consideration and her daughter is a minor attribution would apply. Her daughter would not report the ,000, but instead donna would report it on her return. Result: she pays the tax and her 15-year-old daughter keeps the ,000. Loan: although interest at a commercial rate is not paid, her daughter is not a minor, so attribution would not apply.