New Rules Relating to Income Splitting

Posted on December 21, 2017

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.

6080 Young Street, Suite 400
Halifax, NS B3K 5L2

Jim Brennan ,

Contractor

I’ve worked with Shawn Monahan for ten years; both as an employer and subsequently as a client of Bruce & Monahan’s. Shawn has an excellent understanding of the construction industry and how it works from an accounting perspective. He’s honest and reliable and runs a good operation.