Income Splitting
Filed Under Tax · Tagged: Income Splitting
The main reason we split income is to pay lower overall household tax. We do this by keeping the tax brackets for each spouse as low as possible.
Here are the types of income that can be split:
1. Business Income – requires planning
2. Investment Income – must be planned prior to
3. RRSP Income – must be planned before contribution
4. Pension Income
5. RIFF Income
6. CPP Income
Remember, it takes early planning to split the income as it usually cannot be done after the year is over. Seek the help of a professional to ensure that you get the maximum benefits of income splitting!
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