New Rules Relating to Income Splitting

On December 13, 2017, the Federal Government released its rules relating to income splitting.

The new rules will limit the ability of owners of private corporations to split income with family members in most circumstances. In general, beginning on January 1, 2018, unless a spouse or child works an average of more than 20 hours per week in the business, it is unlikely that the business owner will be able to split income with the family members.

The new rules will make tax planning more complex. We will keep you informed as more information becomes available and as we develop tax planning opportunities for you relating to the above tax changes.

Julie Streight and Natalie Dugie

Working with Shawn and his team has been nothing short of exceptional. Shawn’s professionalism and extensive knowledge about our business needs are calming and reassuring. He takes the time to translate accounting jargon into laymen terms, ensuring we fully understand all the variables so we can make informed decisions about our business and its future. Shawn and his staff are quick to respond to any questions we may have and offer invaluable advice. With the help of this full-service accounting team, our business is set up for continued success. We do not hesitate to recommend Bruce & Monahan (and do so all the time!)