For those of you considering taking advantage of income splitting loans with family members, it is expected that the CRA will raise the current perscribed interest rate of one percent (1%) to two percent (2%) on October 1, 2013.
As a result, now is an ideal time to consider this tax planning opportunity. Similarly, employers making home purchase loans to their employees should also consider making these loans before the rate increase.
In order to take advantage of these opportunities, all arrangements must be finalized by September 30, 2013.
Please contact your Lipton advisor if you would like to discuss this further.