INCOME SPLITTING: Tax Saving Strategies for Canadians (Incorporated & Self Employed)

Income splitting is a strategy for saving thousands in taxes and to keep more of your household income. In this lecture, Dr. Mark Soth presents a comprehensive overview of how to income split with your spouse and family members through splitting salary, dividends, and investments (TFSA, spousal RRSP) for incorporated professionals and sole proprietorships.

𝗧𝗼𝗽𝗶𝗰𝘀 𝗖𝗼𝘃𝗲𝗿𝗲𝗱:
0:00 - Intro
2:17 - What is Income Splitting?
4:12 - Hiring a Spouse & Family Members
6:29 - Income Split in a Corporation (Salary)
9:23 - Dividend Splitting in a Corporation
10:06 - Tax on Split Income (TOSI) rules
12:56 - Efficient ways to take out money from a Corporation
18:01 - Optimizing How much Salary to Pay Spouse
21:52 - Attribution Rules for Income Splitting Investments
25:38 - TFSA to Income Split
26:56 - Spousal RRSP
29:28 - Preserving Low-Income Spouse Income to Invest
31:45 - Spousal Loans
33:46 - HELOCs for Low-Income Spouse to Invest
37:15 - Case: How Mark Income Splits with his wife
39:47 - What happens in Divorce?
40:22 - Summary

This presentation was created by Dr. Mark Soth from The Loonie Doctor Blog. Dr. Soth and Dr. Stephanie Zhou are co-lecturers in the Financial Literacy and Practice Management curriculum for residents and early-career doctors in Ontario.

18:00 - CORRECTION: link to the correct table here: https://tinyurl.com/new-slide

𝗢𝘁𝗵𝗲𝗿 𝗥𝗲𝘀𝗼𝘂𝗿𝗰𝗲𝘀:
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3) Efficient Investing in a Corp / RDTOH:    • Efficient Investing in a Corporation ...  
4) ETFs Made Simple:    • All-In-One ETFs EXPLAINED for Canadia...  
5) Comparison of Asset Allocation ETFs:    • What is the BEST Asset Allocation ETF...  

𝗗𝗶𝘀𝗰𝗹𝗮𝗶𝗺𝗲𝗿𝘀:
This content is for education and entertainment purposes only. Any information, views, and opinions expressed are solely those of the presenter and are not a substitute for financial advice specific to your personal situation. Dr. Stephanie Zhou has no personal conflicts of interest to disclose and was not paid by any parties to conduct this interview of Dr. Mark Soth. Her channel (Breaking Bad Debt) is monetized and may feature ads due to a change in Youtube policy to include ads regardless of whether monetization is turned on or not.
Dr. Mark Soth's blog (looniedoctor.ca) receives a small commission from Qtrade Direct Investing from accounts opened using the affiliate link on the site. The commission goes towards offsetting the costs of running his blog.

#incorporation #incomesplitting #taxsavingtips