INCOME SPLITTING (PG. 322-360)

Question 1

INCOME SPLITTING

Answer 1

A strategy designed to shift income from a family member in a higher marginal tax bracket to another family member in a lower marginal tax bracket.

Question 2

TAX ON SPLIT INCOME (TOSI)

Answer 2

Rules that preclude splitting income with minors who are non-arm’s length as well as those who are nieces or nephews

Question 3

ATTRIBUTION RULES

Answer 3

Apply to property that individuals transfer or lend to their spouse or to an individual under the age of 18 who is non-arm’s length or a niece of nephew of the transferor