Did You Know
That transfers of assets from parents to minor children results in attribution of income but not capital gains. This means that if say shares of IBM are transferred to a minor child, any dividend income is taxed still in the parents hands, but any capital gains on the appreciation in value from the date of transfer will be taxed in the child's hands.
Careful planning with a Chartered Professional Accountant is warranted. Contact Keith Anderson, BCom, CPA, CA-IT, CITP at (780) 447-5830 if you need advice.
Click HERE for more income splitting ideas.