What is income splitting? | ScriptaLegal
Personal Law Business Law Packages & Subscriptions
Français About us Create a free account Log in
Interactive legal guides Legal frequently asked questions Legal blog Videos
ONLINE LEGAL DOCUMENTS
Frequently asked questions > Company > Trust > What is income splitting?

What is income splitting?

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.

Next question : What is a trust?

This browser does not support this kind of file. Please download the file to view it: Download the file