Family income splitting
Tax savings are a priority for many clients. One effective way to reduce your family's overall tax burden is to utilize an income splitting strategy using prescribed rate loans. Prescribed rate loans currently allow funds to be lent between spouses for income-splitting purposes at a 1% rate without income attribution. This is an all-time low and the rate is locked in for the life of the loan, as long as the interest is paid on time.
The Tax-Free Savings Account (TFSA)
Available to Canadians 18 years of age or over, the TFSA includes many benefits for investors who wish to contribute a maximum of $5,000 annually, tax-free. In addition to several other benefits, accountholders are not taxed on income or gains inside the TFSA and there is no tax penalty if you wish to withdraw the funds.
To learn more about the TFSA, or to discuss setting one up, contact us today.
