Comments on: 12 Income Splitting Opportunities

By: Tax Guy

Tax Guy — Tue, 22 Mar 2011 01:44:26 +0000

Hi there. It’s employment income.

By: Melita

Melita — Tue, 22 Mar 2011 00:20:18 +0000

I am wondering- my husband asa sole proprietor who is paying me a non-salaried amount for books and admin. Where do I claim that income, or do I have to be a partner with him? Can it be under other income for me, and what would it be for him?

Thanks.

By: Tax Guy

Tax Guy — Fri, 18 Mar 2011 11:46:05 +0000

In short yes. If your business generates a loss, it reduces your overall taxable income. As a sole proprietorship, you should complete form T2125 and include the amount on that form on Line 135 of your tax return. If there is a profit, it is included with your other income and taxed accordingly. If the business generates a loo, it will reduce your taxable income.

By: Peter Protoss

Peter Protoss — Fri, 18 Mar 2011 02:55:22 +0000

I have started a small business (sole proprietorship) while working full time. I have employed my wife (who does not work otherwise) in this business. I do not expect to make any profit this year.
My question is this: Let us say I make 100K via my Full time job. I invest around 10K in the business and pay my wife 20K and say I make 10K this year.
So total business expenses will be 30K and income will be 10K.
Will this state of affairs result in some tax relief for my income from my full time job. I searched a number of sites but they all leave me confused. Could someone tell me how the tax calculations will be done (high level, approximations).

Thanks,

Peter

By: Tax Guy

Tax Guy — Wed, 09 Mar 2011 09:54:46 +0000

I don’t understand your question. What about OAS would you claim?

By: wendy r

wendy r — Wed, 09 Mar 2011 07:27:47 +0000

After being married for 8 years my ex husband and I divorced in 1981. He is turning 65 this year. Can I claim part of his OAS even though he has been divorced twice since our divorce? We never discussed this at the time.

By: Tax Guy

Tax Guy — Fri, 04 Mar 2011 20:00:51 +0000

Split it according your contribution to the account. If your contribution is small, then most is reported by your husband.

By: Mo

Mo — Fri, 04 Mar 2011 16:08:41 +0000

My husband and I have joint bank accounts. Since I only make a very small amount during the year can I claim 100% of the bank interest on my income tax or do we have to do a 50/50 split.

By: Tax Guy

Tax Guy — Tue, 04 Jan 2011 14:19:09 +0000

You may be able to employ your spouse and claim the expense as long as you are required to incur these expenses under your contract.

The amount you pay your spouse must be reasonable and reflect what would you would have paid an outside party to do the same work. You must also be able to substantiate that the work was actually done.

I suggest you work with your accountant to structure this correctly.

By: Ted

Ted — Tue, 04 Jan 2011 03:19:03 +0000

I am a commissioned sales person. Can I pay my about $5000.00 per year for getting me leads. Can I claim this $5000.00 as I paid salary to wife. How that effect her. She only have about $6000 in rrsp income.