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.

  1. 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)
  2. 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.

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