Hi,
Can you tell us about options for high earning spouse ??
Thanks
Anu
Best tax savings options for high earning spouse.
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Hi Anu,
Here are some tax tips for a high-income earning spouse:
1. Contribute to a spousal RRSP. RRSP contributions are deductible, and upon retirement, your lower-income spouse will include the withdrawals in his/her income.
2. Maximize your TFSA contributions. Income earned in a TFSA is tax-free, and withdrawals are not taxable.
3. Make a spousal loan at the CRA’s prescribed rate of interest (1%). Your lower-income spouse can then invest the loan proceeds into income-producing investments, and any income or gains earned will be taxable to him/her. This is a great income splitting strategy.
4.Consider using a family trust to split income and gains from investments with children.
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