Henry Korenblum, tax specialist at Crowe Soberman LLP in Toronto, discuss the value of locking in spousal/family loans before the interest rate on these loans doubles on Oct. 1st, 2013. Korenblum spoke at the TMX Broadcast Centre in Toronto.
The CRA indicates it will likely raise the rate on prescribed loans to 2%
Clients could lose out on a key income-splitting technique if the interest is not paid by the end of January
Beware of interest payment dates, Golombek says
The Canada Revenue Agency is raising its “prescribed interest rates” for the first time since the fall of 2003. The rate used to calculate low-interest spousal loans will rise to 4% from 3% in the next quarter, starting on April 1.Spousal loans –- a common income-splitting technique –- can provide significant tax savings. While arranging […]