The Tax Benefits Of Real Estate Investing: Difference between revisions
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Revision as of 15:41, 20 July 2025
S is for SPLIT. Income splitting is a strategy that involves transferring a portion of revenue from someone is actually in a high tax bracket to a person who is within a lower tax range. It may even be possible to lessen tax on the transferred income to zero if this person, doesn't have other taxable income. Normally, the other individual is either your spouse or common-law spouse, but it can also be your children. Whenever it is possible to transfer income to someone in a lower tax bracket, it should be done. If major difference between tax rates is 20% then your family will save $200 for every $1,000 transferred into the "lower rate" family member.
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The more you earn, the higher is the tax rate on use earn. In 2010-you have six tax brackets: 10%, 15%, 25%, 28%, 33%, and 35% - each assigned with a bracket of taxable income.
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