Hello,
Looking for some help re a joint savings account for two individuals. I gather the typical institution reports interest income on the primary owner's tax slip.
What exactly are the rules re basic investment income (interest) splitting? Are we only allowed to do a 50/50 split regardless of whose slip the amount appears?
Thanks.
Interest should be reported based on the amount of money each person deposits to the account. It doesn't really depend on the SIN number on the slip.
E.g. if one person puts in 60% of the principal in the account and the other 40%, that's how the income should be reported.
It is common practice to simply split the income 50/50.
Ideally, the lowest income earner would save 100% of their income and report the interest due to the preferable tax rates. The higher income earned should pay all the bills in order for the lower earner to invest.
