S is for SPLIT. Income splitting is a strategy that involves transferring a portion of revenue from someone who's in a high tax bracket to someone who is in a lower tax clump. It may even be possible to reduce the tax on the transferred income to zero if this person, doesn't have any other taxable income. Normally, the other person is either your spouse or common-law spouse, but it could even be your children. Whenever it is easy to transfer income to a person in a lower tax bracket, it should be done. If the difference between tax rates is 20% then your family will save $200 for every $1,000 transferred to the "lower rate" partner.
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If you add a C-Corporation into the business structure you can aid in eliminating your taxable income and therefore be qualified for some deductions that your current income is just too high. Remember, a C-Corporation is its unique individual citizen.
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Pay 2008 Taxes - Some Questions In How To Carry Out Paying 20...
