Tax Strategies
Tax Managed Investing – Strategy #6
Lower the Family Tax Bill – Income Splitting Using Loans
People often consider tax saving strategies on an individual basis, but overlook family strategies that can save significant tax dollars. The use of intra-family loans to split income and save taxes is a good example.
Income Splitting involves the transfer of income from the high-income earner to a family member in a lower tax rate, and the family pays less tax overall.