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Income Splitting & Family Tax Planning
Attribution Rules For Loans & Gifts To A Minor Child Calculator
The income gets attributed straight back to the parent. The capital gain, quietly, does not. That asymmetry is the entire reason this kind of planning still works at all.
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How To Use This Calculator
Enter the annual income and capital gain the transferred property generates, and whether this was a genuine loan at the prescribed rate.
Interest and dividend income from property gifted or loaned below-market to a minor child attributes straight back to the parent every year the child stays a minor. Capital gains on the same property are taxed to the child instead, a structural gap this kind of planning is specifically built around.
Your Inputs
Where The Tax Actually Lands
-Income Attributed To Parent
$0
Capital Gain Taxed To Child
$0
Total Family Tax Bill
$0
Tax Owing: Attributed Income vs. Child's Capital Gain
A genuine loan at or above the prescribed rate, with interest actually paid by the child each year, avoids the income attribution entirely, capital gains are never attributed regardless of the structure used. Loan documentation and actual interest payment are what CRA checks first if this is ever reviewed.