10 Ways to Split Your Income
Income splitting involves moving income from the hands of a high income family member into the hands of another member who is taxed at a lower rate.
| 1) Contribute to a spousal RRSP. |
| 2) Contribute to an RESP. |
| 3) Split up to 50% of your CPP benefits with your spouse. |
| 4) Invest inheritance received by lower income spouse in his/her name. |
| 5) Higher income spouse pays household bills, other spouse invests. |
| 6) Loan money to spouse to invest. Charge market interest rates. |
| 7) Give cash to lower income spouse to pay investment loan interest. |
| 8) Put capital gains generating investments in minor children's names. |
| 9) Invest Child Tax Benefits in the child's name. |
| 10) Deduct babysitting wages paid to adult children as child care expenses. |
