Comments on: The Income Splitting Rules

By: Nora

Nora — Wed, 16 Mar 2011 02:57:31 +0000

I wish to give my brother $40,000 for university. I would need to withdraw this from my corporations bank account. Can I just give him the money, and if i do is it considered a payment to me-the only shareholder? Should I loan him the money and at what rate? Does he ever have to re-pay? I don’t want to include this in personal income but I do want him to have the money.

By: Tax Guy

Tax Guy — Tue, 08 Mar 2011 11:26:30 +0000

Its hard for me to say but it is possible to pay a spouse a reasonable wage for work. The payment must be no more than you’d pay an unrelated third party and the work must actually be done.

By: kennedy

kennedy — Tue, 08 Mar 2011 04:33:40 +0000

Hi.

I own 2 propertie sand my husband & I own 2. My husband has always been the ‘handy man’ on all properties. Can I write off his wage somewhere? Also, I have claimed the 100% ownership on all even though we are both on title of 2. Do iI have to change that?

By: Tax Guy

Tax Guy — Tue, 08 Mar 2011 03:30:34 +0000

That’s right.

By: Nads

Nads — Tue, 08 Mar 2011 00:18:01 +0000

Hi Tax Guy,

Just wondering, so it is not possible to combine my income (65000) with my common – law partner’s income (25000) and then split the income 50/50 so that the high income earner will be in a lower tax bracket and recieve a larger tax return?

By: Tax Guy

Tax Guy — Fri, 04 Mar 2011 02:23:10 +0000

Hi beh,
I’m not sure I understand. Did you buy a principal residence? If so, what income would you split?

By: Beth

Beth — Thu, 03 Mar 2011 23:19:48 +0000

Hi,

In 2010, my husband lent me $ 70,000 so we can purchased the home together(under both names). Is that considered a income splitting? We also made a note that he lent me money at interest rate of 3%. Does it have to show that money in my bank first or? The whole downpayment amount was came out of his bank.

Please let me know. Thanks so much in advance

By: Tax Guy

Tax Guy — Tue, 22 Feb 2011 22:16:46 +0000

Jeff,
the change in the name on the certificate or deposit to the childs ITF account is the proof!

By: Jeff Smythe

Jeff Smythe — Tue, 22 Feb 2011 20:43:23 +0000

Is there a form or accepted ‘proof’ for gifting publicaly traded shares to a child under the age of 18?

By: Tax Guy

Tax Guy — Mon, 21 Feb 2011 21:25:12 +0000

Mark,
Sure you can pay your wife and yes it is income splitting. The limit is that the work must be actually done (and you need to prove it with a time sheet or some other record) and the amount you pay her is no more than what you would pay someone unrelated t0 you to do the same work.