[Frank MetaMusil]

Originally Posted by kunkstyle

Fishy, maybe, but that's how it works. GST rebates are based on household income, not individual. Because you're now married your combined income is what they base qualification on. The larger your family gets the more Rev Can screws you.

@username : I thought income splitting could only be used in retirement?

Somewhat of a long post

Income Splitting Opportunities

1. The higher income-earning spouse pays all of the family expenses that are not deductible, including the income taxes of the lower spouse. The lower income spouse then uses their income for investment.
2. If a new business is started, allow lower income family members to acquire an equity position. Consult a professional for advice on structuring such an arrangement.
3. If you own a business, employ your spouse or children and pay a reasonable salary.
4. If the CRAs prescribed rate of interest is lower than investment yields, it may be beneficial to lend funds at the prescribed rate to a family member who reinvests the funds.
5. Spousal RRSP’s have a limited potential for income splitting. The goal should be to ensure both spouses have the same income in retirement.
6. Split your pension income with your spouse (see our article on Pension Income Splitting).
7. Tuition fees do not have to be actually paid by the student to receive the tuition tax credit. A parent may pay the expense and the student may still claim the credit.
8. If a related minor or spouse receives a gift or inheritance from a source that the income splitting rules would not have applied, the funds should be held in a separate account and “not” be used for household expenses.
9. Property that has the potential to earn capital gains should be given to minor children rather than a spouse.
10. If funds are given to a child in their 17th year and a term deposit is acquired where the interest will pay in their 18th year. The interest will be tax in their hands in the following year
11. If a child has employment income, lending funds up to an amount to which they would earn from employment, interest free, will free the child’s employment income to earn investment income. The funds lent would then be used for their own purchases.
12. Income earned from Canada child tax benefit payments invested in the child’s name will not be attributed.