How To Split Pension Income

Congratulations, you have reached a milestone and have finally retired. You are receiving a pension from your former employer and would like to split it this with your spouse under the pension splitting rules. What is Pension Splitting? If you receive pension income eligible for pension income tax credit, you can split up to 50% of this pension income with…

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12 Income Splitting Opportunities

Many of the income splitting opportunities have been curtailed by a set of rules known as the attribution rules. When opportunities are available, they can be complex, expensive, and difficult to maintain. However, if you and other family members are in very different tax brackets, the benefits may be substantial. Record Keeping Proper records are a must when establishing an income splitting arrangement.…

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Tax Tip: Disability Tax Credit – Do You Qualify?

You may be surprised to know that the federal and provincial governments offer generous personal tax credits for: Persons with disabilities, or The person who supports another person (family member) with a disability. If you or the person you support qualifies, you may be entitled to claim these credits retroactive to the start of the disability (or 10 years back,…

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Pension Income Splitting

The 2007 tax year was a big win for seniors when the Government introduced pension income splitting which allows lowering income taxes between spouses. Prior to these new rules, only Canada Pension Plan could be split but the calculation was done by the Government and was not straight forward. How Pension Splitting Works In order to split your pension income,…

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Read more about the article What Is Eligible Pension Income?
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What Is Eligible Pension Income?

If you receive certain pension income, you may be able to claim the $2,000 pension income tax credit (also known as the pension amount) as well as split this pension income with your spouse or common law partner. But what pension income qualifies? If You Age 65 Or Older If you are over the age of 65, the following qualifies…

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What Is A Trust?

Simply speaking a trust is a relationship where one person (the settlor) transfers assets to a trustee for the benefit of a third person (beneficiary). The trustee manages the assets for the benefit beneficiary. In more formal terms, a trust is a relationship whereby a person (the settlor or donor) transfers property to another person (the trustee) for the benefit…

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