Tax Tips by Allan Madan Watch Video
Allan Madan, CPA, CA
We’re all tired of paying too much in tax. For this reason, I’ve created a list of the Top 5 Tax Tips for business owners, Read More…
Disclaimer
The information provided on this page is intended to provide general information. The information does not take into account your personal situation and is not intended to be used without consultation from accounting and financial professionals. Allan Madan and Madan Chartered Accountant will not be held liable for any problems that arise from the usage of the information provided on this page.
ABOUT THE AUTHOR
ALLAN MADAN
CPA, CA
Allan Madan is a CPA, CA and the founder of Madan Chartered Accountant Professional Corporation. Allan provides valuable tax planning, accounting and income tax preparation services in the Greater Toronto Area.
My soon-to-be wife and I are looking to save some money. I was looking to save on taxes by income splitting with my fiancé who makes a lower income. Would I be able to do this or can you only use this strategy if you are married to them?
Hi, Jack! Unfortunately you can only split your income with a spouse, common-law partner, or your children. But if there is a difference in the income tax brackets that you are both in then you can have the higher income earner pay for the bills and other expenses. This will allow the lower income spouse to use their income for investment. Because they are in a lower tax bracket, the marginal tax rate will be lower and you will save money that you would have otherwise had to pay in taxes.
Hi Allan, I was reading your material on Quick method and you indicate that the other income generated using quick method is NOT taxable? Could you confirm your source for this position? Thanks for your tips.
Hi Tom,
Section 9 of the Income Tax Act states that business income is taxable. However, GST/HST collected and remitted according to the QM is not considered business income, even if it yields a better result than the Traditional Method of HST Collection.