Learn About How A Tax Attorney Works: Difference between revisions
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Revision as of 08:55, 8 October 2026
S is for SPLIT. Income splitting is a strategy that involves transferring a portion of income from someone which in a high tax bracket to a person who is in the lower tax bracket. It may even be possible to reduce the tax on the transferred income to zero if this person, doesn't possess any other taxable income. Normally, the other body's either your spouse or common-law spouse, but it could even be your children. Whenever it is possible to transfer income to someone in a lower tax bracket, it must be done.
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But assuming you qualify, that will reduce your bottom line tax liability by $3500. Since you owed three thousand dollars, your tax has started to become zero income. If you purchase a national muni bond fund your interest income will be free of federal taxation (but not state income taxes). One does buy circumstances muni bond fund that owns bonds from your personal home state this interest income will likely be "double-tax free" for both federal while stating income .
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