Mary Keetch Financial Services

All in the family

All in the Family

How to take advantage of income-splitting using intra-family loans.

AFTER JUST TWO YEARS, the “family tax cut” was eliminated in the 2016 federal budget. However, families still have other opportunities to split their income to save taxes. One strategy is to make an “intra-family loan” to your spouse (married or common-law) or to your minor child. Provided the loan is properly structured and formalized through a promissory note, the recipients can invest the loan proceeds, and any investment income they earn will be taxed at their lower marginal rates.  Click here to continue reading…

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