Dealing With Tax Problems: Easy As Pie: Difference between revisions
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Revision as of 09:12, 9 October 2026
S is for SPLIT. Income splitting is a strategy that involves transferring a portion of income from someone will be in a high tax bracket to someone who is in a lower tax range. It may even be possible to reduce the tax on the transferred income to zero if this person, doesn't have other taxable income. Normally, the other body's either your spouse or common-law spouse, but it can also be your children. Whenever it is possible to transfer income to someone in a lower tax bracket, it must be done.
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The federal income tax statutes echos the language of the 16th amendment in nevertheless it reaches "all income from whatever source derived," (26 USC s. 61) including criminal enterprises; criminals who in order to report their income accurately have been successfully prosecuted for anjing. Since the word what of the amendment is clearly suitable to restrict the jurisdiction from the courts, occasion not immediately clear why the courts emphasize the phrase "all income" and disregard the derivation within the entire phrase to interpret this section - except to reach a desired political end.
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