# taxing dividend to the lower income spouse



## rassmy (May 7, 2010)

Question to the tax experts. Me and my wife are sharing a non-registered investment account, we receive a dividend income from this account, the question is that as my wife is on the lowest tax bracket can I claim the full dividend to her? Although my name and her name appear on the T5 form we receive from the broker firm.

Appreciate your reply.
Thanks


----------



## pwm (Jan 19, 2012)

Only if you can justify to CRA that it was her money that paid for the investment that produced the dividend. She either had to earn it or you could have loaned her the money. CRA's "attribution rule" applies to the dividend income.


----------



## rassmy (May 7, 2010)

Thanks pwm for the reply, in fact we borrowed the money from our HELOC, every year we receive nice dividend and some capital gains. As we share the investment account, I don't want to take the 50% of the received dividend, I just want to take 15% and give her the remaining 85% of the dividend. Am I allowed to do so? Or we must share the dividend 50% each.


----------



## MoneyGal (Apr 24, 2009)

You have to share it equally, given that (it sounds like) you funded it equally.


----------



## rassmy (May 7, 2010)

I found this link from CRA, I don't know if that apply to my case

http://www.cra-arc.gc.ca/tx/ndvdls/tpcs/ncm-tx/rtrn/cmpltng/rprtng-ncm/lns101-170/120/menu-eng.html

http://www.taxplanningguide.ca/tax-...3-investors/transfer-dividend-income-spouses/


----------



## billiam (Aug 24, 2009)

Read this:

http://www.cra-arc.gc.ca/E/pub/tp/it295r4/it295r4-e.html

to see if you qualify.


----------



## GoldStone (Mar 6, 2011)

rassmy said:


> I found this link from CRA, I don't know if that apply to my case
> 
> http://www.taxplanningguide.ca/tax-...3-investors/transfer-dividend-income-spouses/


No it doesn't apply to your case. 

You want to transfer the dividends from the higher income spouse (you) to the lower income spouse (your wife).

The link explains a case where it would be beneficial to do the opposite: claim dividends on the tax return of the higher income spouse.


----------

