Explain why income splitting results in an overall decrease in taxes payable for the family when one
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Question:
- Explain why income splitting results in an overall decrease in taxes payable for the family when one spouse makes significantly more income than the other. (Different marginal tax rates)
- Lisa is a single parent with one child age 19 and two children under 10 years old.
Canadian Securities
Tax Planning Strategies-Income Splitting
Splitting of income for tax planning purposes is permitted in certain circumstances.
REQUIRED:
List and describe two (2) income splitting strategies that would be permitted for Lisa to use for tax purposes.
Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
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