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Management Fee to my Wife company Tax

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I want to split income with my spouse. Can I give a management fee to her company

Randy Dueck Changed status to publish November 5, 2020

Income splitting has become very tricky. By giving management fee to your spouse company, you will make both the companies associated and they have to share the small business deduction. If the net income of both the companies is less than $500,000 then you are fine in giving the management fee to your spouse company.

Based on the final scenario, remember to report association on S23 and management fee on S14. You might have to report Specified Corporation Income on S7.

Randy Dueck Changed status to publish November 5, 2020