Laika Posted December 14, 2009 Report Share Posted December 14, 2009 - you pay a dividend of 100,000 to your spouse leaving 100,000 for yourself, effective tax rate is 30% for each of you, tax is 60,000 total From what I understand, no. Spouses or kids without other income don't pay tax on the first $30K of dividends. Can be significant savings if there are multiple kids. See: http://www.ritceyteam.com/pdf/tax_free_dividends.pdf Link to comment Share on other sites More sharing options...
cheech10 Posted December 16, 2009 Report Share Posted December 16, 2009 My numbers were just an illustration of the benefit of income splitting, not a thorough breakdown of the various tax credits and exemptions and the resulting effective tax rate. You're right, a spouse with no other income would get the first 30K in dividends tax free, but dividends to kids under 18 are subject to the kiddie tax since 2000, which is at the highest tax rate and the personal exemption does not apply (though the dividend tax credit does). So there is an advantage to income splitting with a spouse, but not much of one for kids. Link to comment Share on other sites More sharing options...
MMJC Posted March 12, 2010 Report Share Posted March 12, 2010 There is a company looking for people to help them by consulting about Canada's MMAR program. Would anyone be interested? Link to comment Share on other sites More sharing options...
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