Family Income Splitting Tax Credit Eliminated
With the Liberals taking their seat in parliament, the income splitting rules introduced for tjhe 2014 tax year will be phased out for the 2016 tax year. This may seem like a bad thing, however the liberals have introduced new child tax benefit and child tax credit rates which will benefit all families with children - not just those who have one spouse with a significantly higher income than the other. In my opinion, families will be better off with the new regime going forward.
If you are self employed there are still several income splitting strategies that are available. Contact me to discuss these and how they may be applicable to your individual circumstances.
If you have any questions about this or other personal income tax or corporate income tax matters, we would be happy to help you.
Contact us through our website or by phone at 604-985-0123.