One of the most useful types of tax planning available to individuals with large amounts of income is income splitting. In implementing an income splitting arrangement, one of the most useful techniques is to have the individual transfer assets to a corporation under the provisions of Section 85 of the Income Tax Act. However, if such a transfer is not carefully designed, the full objectives of the income splitting plan may not be achieved. What steps must be taken to ensure that transfers of property under Section 85 do, in fact, achieve the desired income splitting goals?

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The Answer of One of the most useful types of tax planning available to individuals with large amounts of income is income splitting. In implementing an income splitting arrangement, one of the most useful techniques is to have the individual transfer assets to a corporation under the provisions of Section 85 of the Income Tax Act. However, if such a transfer is not carefully designed, the full objectives of the income splitting plan may not be achieved. What steps must be taken to ensure that transfers of property under Section 85 do, in fact, achieve the desired income splitting goals?

One of the Most Useful Types of Tax Planning Available