Attribution Rules
a consideration in income splitting
The attribution rules prevent you from avoiding or reducing tax by transferring, loaning or gifting property to a spouse or close family member
- doesn’t apply to transfers at Fair Market Value
- can pay interest on investment loans made by third parties
- the loan interest is tax deductible to the lower income party (e.g., spouse)
page revision: 2, last edited: 29 Jul 2007 19:25