tax matters

I’ll admit that I’m not the best at choosing gifts for my wife. Unless I’m buying her diamonds – which is always a hit – I usually fail miserably. But I’ve got a great idea for this Christmas: the gift of tax savings.

I’m setting things up so that we’ll save about $5,000 next year thanks to some income splitting. Splitting income takes planning, so why not get your affairs in order before year-end to save tax in 2026? Here are the top ideas to consider.

Lend money to your spouse

On Jan. 16, I wrote about lending money to your lower-income spouse and charging the prescribed rate of interest on the loan. Today, that rate is 3 per cent and it looks like this rate is set to continue into the first quarter of 2026. If you charge this rate on a loan and your spouse pays the int

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