There are only a few months left to take advantage of low prescribed interest rates for income splitting and other loans as the rate will double to 2% on April 1, 2018.
Prescribed rate loans can be used to split investment income with a spouse or common-law partner with lower income. One partner in the highest tax bracket, for example, can loan money to the partner in the lower bracket to invest, with the dividends taxed at the lower bracket.
To learn more, please contact our office.
