CRA lowers prescribed rate for first quarter of 2014 to one per
cent
Now couples can split again without cheating...income split that
is. The CRA has announced that they have decreased the
prescribed rate for the first quarter of 2014 from 2% to 1%,
effective January 1, 2014. Consequently, Canadian taxpayers now
have another opportunity to lock-in prescribed rate family loans at
the lowest possible level and potentially achieve significant tax
savings by utilizing this income splitting strategy.
Specifically, eligible Canadians will be able to lock-in the 1%
rate if they enter into their lending arrangements between January
1, 2014, and March 31, 2014. (Family loans entered into after
September 30, 2013, and prior to January 1, 2014, are subject to a
higher 2% prescribed rate).
