Not sure what you need help with but review the information below to assist you:
rules for tax on split income (TOSI) were revised by the government for 2018.
Income subject to TOSI will be taxed at the highest tax rate. These rules aim
to eliminate tax benefits arising from splitting income between family members
who have not made a significant contribution to the family business.
The rules surrounding TOSI pertains to the following types of investment income:
- Dividends and shareholder benefits from Canadian private corporations
- Partnership income derived from a related business or from a rental of a related person
- Trust income derived from private corporation dividends/benefits, a related business or a rental where a related person is involved
- Income from debt (e.g. interest) from private corporation, partnerships or trusts
- Income or gain from disposition of private corporation shares and other property where the TOSI rules have historically applied
Important: The government added many exceptions to the TOSI rules. If an exception pertains to your situation, then the TOSI rules will not apply to you. This means the particular income would be subject to the regular tax rate.
Please take the time to review these additional links to assist you in understanding as well as reporting TOSI.
- TOSI PDF: https://bit.ly/2O4n7Z7
- Line 424 - Federal tax on split income - https://bit.ly/2UvDXT1
- From the CRA Income sprinkling - https://bit.ly/2HN559x