Learn Regarding A Tax Attorney Works: Difference between revisions
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Revision as of 02:29, 5 October 2024
S is for SPLIT. Income splitting is a strategy that involves transferring a portion of revenue from someone who is in a high tax bracket to someone who is within a lower tax clump. It may even be possible to lessen tax on the transferred income to zero if this person, doesn't have other taxable income. 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 profitable between tax rates is 20% then your family will save $200 for every $1,000 transferred to the "lower rate" relation.
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