Skip to content

Home
About
Services
- - - We offer Real Estate Accounting Services and Tax solutions
Blog
- - - Latest Insights
      - Tax Strategy: Prescribed Loan Rate Strategy July 8, 2025
        
        The tax planning strategy that you can take advantage of today.
        
        Despite 2018 reductions in income-splitting tax strategies used in family trusts, TOSI tax and income splitting rules have made room for the prescribed rate loan strategy variation to thrive.
        
        How it works:
        
        Investment income held within the family can be split with low-income beneficiaries (i.e. low-income spouse or young children). The higher-income counterpart can loan funds to the family trust to then invest in publicly held securities. Continuously re-investing the gains from these securities (through the family trust) can produce ongoing growth. Additionally, since low-income earners have a significantly lower marginal tax rate than higher earners, beneficiaries of the trust don’t need to be paid out right away! This translates to big tax savings over time.
        
        CRA sets the prescribed loan rate every quarter making it important to lock in this strategy before the rate increases above its current 4%.
        
        Important Caveat:
        
        A crucial note when applying the prescribed loan rate strategy is that the high-income earner must be paid the interest of the loan on January 30th every year. All benefits of this tax planning strategy will be lost if you miss the deadline!
        
        Stay on top of all important deadlines and start capitalizing on this strategy today by connecting with our tax experts.
        
        Learn more now: admin@realfile.ca
        
        Read Article
      - Investing in US Real Estate? June 10, 2025
        
        What you need to know about the TCJA enactment.
        
        TCJA Impact - US Real Estate Investing Download
        
        Read Article
      - May Newsletter May 22, 2025
        
        Tariffs, tax breaks, and more. Curious how they affect you?
        
        Read Below.
        
        Tax Tips and Traps 150, 2025 - 2nd Quarter Download
        
        Read Article
Contact Us

Real File CPA Event Recap

Published on May 12, 2025April 4, 2025 by jason Cheung

Real File CPA Webinar/Seminar Recordings

Check here to see a list of all event recap published by Real File CPA.

Categories Blog, Category 1

Real File CPA Newsletters

Leaving Canada? It’s Important to Know the Tax Consequences.

Share this article

Newsletter

Subscribe To Our Mailbox & Get Exclusive News

* indicates required

Email Address *

Similar articles

May Newsletter

May Newsletter

Tariffs, tax breaks, and more. Curious how they affect you? Read Below.

Real File CPA Newsletters

Real File CPA Newsletters

Real File CPA Published Newsletters by Month Check below to see a list of all newsletters published Real File CPA.

Leaving Canada? It’s Important to Know the Tax Consequences.

Leaving Canada? It’s Important to Know the Tax Consequences.

A Guide to the Tax Implications of Emigrating See below for details.

We offer Real Estate Accounting and Tax solutions to clients across Markham, Toronto, Mississauga, Brampton, Hamilton, Oshawa, Vaughan, Guelph, Kitchener, Waterloo, St. Catharines, Barrie, Ottawa, London, and Windsor, Canada.

Links

Home
About Us
Why RealFile CPA
Meet Our Team
Case Studies & Testimonials
Services
Blog
Contact Us

Location

80 Tiverton Ct Ste Suite 802, Markham, ON L3R 0G4

(877) 626-7363
info@realfile.ca

Follow Us

Facebook

Instagram

X

LinkedIn

YouTube

© 2024 Realfile CPA. All rights reserved.

© 2025 Real file CPA • Built with GeneratePress