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S is for SPLIT. Income splitting is a strategy that involves transferring a portion of greenbacks from someone who is in a high tax bracket to a person who is in a lower tax class. It may even be possible to reduce the tax on the transferred income to zero if this person, doesn’t have a other taxable salary. Normally, the other person is either your spouse or common-law spouse, but it can also be your children. Whenever it is easy to transfer income to a person in a lower tax bracket, it must be done. If document between tax rates is 20% your own family will save $200 for every $1,000 transferred to your “lower rate” beloved.

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