How To Handle With Tax Preparation: Difference between revisions
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Revision as of 20:47, 2 May 2026
S is for SPLIT. Income splitting is a strategy that involves transferring a portion of revenue from someone who is in a high tax bracket to a person who is within a lower tax bracket. It may even be possible to lessen tax on the transferred income to zero if this person, doesn't have got other taxable income. Normally, the other body's either your spouse or common-law spouse, but it could even be your children. Whenever it is possible to transfer income to a person in a lower tax bracket, it should be done. If profitable between tax rates is 20% then your family will save $200 for every $1,000 transferred to your "lower rate" close friend.
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