I Loan My Wife

👉🏻👉🏻👉🏻 ALL INFORMATION CLICK HERE 👈🏻👈🏻👈🏻

Georgetown University•1,1 млн просмотров
Алексей Навальный•23 млн просмотров
Brittany Joudrey•10 тыс. просмотров
Cam NewtonНовинка13 тыс. просмотров
John Henrik Clarke - Topic•42 тыс. просмотров
VIP Financial Education•31 тыс. просмотров

The idea is to split income, following Canada Revenue Agency guidelines, so the family pays less tax overall.
Photo created by rawpixel.com - www.freepik.com
Q. I’m 38 years old and have been married for 10 years. I would like to set up a spousal loan to my wife, who works part-time while raising our two young sons.
How would I go about doing this correctly? And is there any special consideration of a cash versus “transfer-in-kind” of stocks, other than that they would be considered sold and I would have to pay any capital gains tax on their appreciation in value at the time of transfer? Or, for record-keeping purposes, would it be better if I sold the stocks to loan cash?
–Ralph
A. The idea behind a spousal loan is to lend money from a high-income spouse to a low-income spouse. If the subsequent return on the investments exceeds the loan rate prescribed by the Canada Revenue Agency, the general result is that income is effectively moved from one spouse to the other, and the family may pay less tax overall.
Interest paid by the borrower is tax-deductible, as the borrowed money is for investment purposes. Interest income received by the lender is taxable, just like interest income on savings accounts, GICs* or bonds.
For income tax purposes, spouses need to worry about attribution. Attribution is when income earned by one spouse is attributed back to another spouse and instead taxed in their name. There are several situations in which attribution can apply.
In this case, Ralph, if you have cash or own non-registered investments accumulated from your past earnings and savings, the resulting income is taxable on your tax return. You can’t just give cash or investments to your wife and have the income taxed on her tax return. This would trigger attribution, with the subsequent investment income being taxable back to you. (I’m guessing you already know this, as you’ve asked specifically about loaning cash or investments to your wife.)
However, if your wife saved her part-time earnings, and you both used your earnings to pay for family expenses instead, this is one legitimate way to build up a taxable, non-registered investment portfolio in your wife’s name to be taxed to her.
Given you have existing cash and non-registered investments that belong to you for tax purposes, Ralph, you need to consider not only how, but if you should establish a spousal loan.
I don’t want to speculate, but given your relatively young age, I can’t help but ask about alternative options to non-registered investing. Is your RRSP* maxed out, Ralph? What about TFSAs* for you and your wife? You have young children—have you maxed out their RESPs? Depending on your tax bracket, retirement plans, post-secondary education funding targets and other factors, you may be better off focusing on these other accounts before non-registered investing or considering a spousal loan.
If you have debt, including a mortgage, you need to consider your risk tolerance, investment fees, mortgage rate and short-term cash flow, all of which may result in debt repayment being a good alternative to a spousal loan strategy.
Assuming a spousal loan is a viable option, Ralph, you and your wife would want to choose a loan amount that she could invest for the medium or long-term. Money loaned from one spouse to another at the Canada Revenue Agency “prescribed” rate—currently 2%—can have resulting investment income taxable to the recipient spouse.
A lawyer could certainly be used to prepare the loan agreement, Ralph, but the main considerations are that the loan is a promissory note at the current prescribed rate of interest with payments due annually by no later than January 30—including the first year that the loan is made (likely a partial, prorated year). Perhaps the more important professional advice for a spousal loan is tax advice, to ensure that the strategy will indeed result in less tax payable by you and your wife.
The rate at the time that the loan is made can stay in effect for the life of the loan. For several years, the prescribed rate for spousal loans stood at 1%, but it rose most recently in April 2018 to the current 2% rate that applies as of the third quarter of 2019.
If you transfer existing non-registered assets in kind, such that your stocks, bonds, ETFs or mutual funds are moved over as-is to your wife, you will need to recognize any resulting capital gains or losses on your tax return. The market value of the investments on the date of transfer can be used to determine the amount of the spousal loan, and the loan is considered payment (consideration) triggering any deferred capital gains or losses for you.
Whether you should use cash or non-registered assets to fund the loan will depend: If you have large deferred capital gains, that may be one reason to reconsider using those assets. But the long-term tax savings from future income being taxable to your wife may be worth it to realize some of the tax payable today.
If you have a large amount of cash and non-registered assets—at least $100,000 and potentially $500,000 or more, depending on your circumstances—you may want to consider setting up a discretionary family trust. This could be a way to split income not only with your wife, Ralph, but also with your children.
Income splitting can be a wise tax strategy in the right circumstances. And, if you do it right, it can be a legitimate way for families to pay less overall income tax.
Jason Heath is a fee-only, advice-only Certified Financial Planner (CFP) at Objective Financial Partners Inc. in Toronto, Ontario. He does not sell any financial products whatsoever.
If a link has an asterisk (*) at the end of it, that means it's an affiliate link and can sometimes result in a payment to MoneySense (owned by Ratehub Inc.) which helps our website stay free to our users. It's important to note that our editorial content will never be impacted by these links. We are committed to looking at all available products in the market, and where a product ranks in our article or whether or not it's included in the first place is never driven by compensation. For more details read our MoneySense Monetization policy.
Your email address will not be published. Required fields are marked *
Great article. I am curious about the timing of spousal loans as well as the interest owed calculation. For example, if a $100K loan is established on July 1st with a prescribed rate of 1%, would the interest owed on that loan at the end of the year be $500 since it was for half a year? Also, could multiple loans be established throughout the year to time the loans closer to ex-dividend dates of Canadian stocks as a means to incur the least amount of interest on the loans?
Ginette wonders if she can claim survivor benefits although...
Barb’s mother is living in a house that was...
There are benefits, but also potential pitfalls, to beware...
Douglas is considering buying the property he rents from...
There are good reasons for Canadians to invest in...
If Alison’s annual rent exceeds 5% of the cost...
Virtual signing and remote witnessing are now permanent options...
MoneySense is a digital magazine and financial media website. Journalists and qualified financial professionals produce the content. MoneySense’s goal is to provide the most relevant and up-to-date information as possible but, with all things you read on the internet, it is recommended you read critically and cross-reference with your own sources, especially before making any financial decisions.
MoneySense continues to update and make changes to correct any factual errors. MoneySense is not responsible for content on external sites that we may link to in articles. Furthermore, our editorial team does its best to ensure the information published on MoneySense.ca and other MoneySense properties is accurate. However, sometimes prices and terms of the products are changed by the provider without notice. If you read something you feel is inaccurate or misleading, we would love to hear from you. Please contact us.
MoneySense is fully owned by Ratehub Inc. but remains editorially independent. For more information, please read our policies.
© 2002-2021 Ratehub Inc. All rights reserved
© 2002-2021 Ratehub Inc. All rights reserved

Biggest Boobs Being Fucked
Victoria June Milf
Big Tits Facial Oral
Masturbation Milf 2021
Mature Porn Pics Galleries
If your best friend wants to borrow your wife or your ...
I paid off my wife’s student loans — then she filed for ...
Can I Take On My Wife's Student Loans? | Credit.com
Take loan instead of money handout from spouse to fund new ...
Should My Spouse and I Apply for a Mortgage Jointly, or ...
I Loan My Wife