Annual Taxes - Humor In The Drudgery: Difference between revisions
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Revision as of 10:18, 2 September 2026
S is for SPLIT. Income splitting is a strategy that involves transferring a portion of revenue from someone can be in a high tax bracket to someone who is in the lower tax bracket. It may even be possible to lessen tax on the transferred income to zero if this person, doesn't possess other taxable income. Normally, the other individual is either your spouse or common-law spouse, but it could even be your children. Whenever it is possible to transfer income to someone in a lower tax bracket, it must be done. If profitable between tax rates is 20% then your family will save $200 for every $1,000 transferred to your "lower rate" significant other.
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