Income splitting consists of distributing and assigning earned family income among members of a family unit in order to benefit from lower tax brackets, deductions and credits to which family members are eligible. Thus, income is shifted from a high-income taxpayer to another taxpayer who has the lowest income tax rate within the family unit. In the case of sale of shares of the corporation, you can also benefit from and multiply the capital gains exemption.
This technique allows to increase the available household cash flow and thus better meet the financial needs of the family.
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