This technical module explores the attribution rules designed to prevent income splitting between family members in circumstances that lack economic substance. It covers attribution of income and capital gains on transfers and loans to spouses, minor children, and trusts, including the exceptions and exclusions under sections 74.1 to 74.5 of the Income Tax Act. Learners will gain insight into how the CRA applies these rules in audits and how proper structuring—such as fair market value sales, prescribed rate loans, or use of excluded property—can help avoid attribution. This module is essential for advisors seeking to manage intra-family transactions and ensure compliance in tax planning.
This technical module explores the attribution rules designed to prevent income splitting between family members in circumstances that lack economic substance. It covers attribution of income and capital gains on transfers and loans to spouses, minor children, and trusts, including the exceptions and exclusions under sections 74.1 to 74.5 of the Income Tax Act. Learners will gain insight into how the CRA applies these rules in audits and how proper structuring—such as fair market value sales, prescribed rate loans, or use of excluded property—can help avoid attribution. This module is essential for advisors seeking to manage intra-family transactions and ensure compliance in tax planning.
Comprehensive, structured learning path
2 modules • 9 lessons • 1.5h total
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