General information only — not financial advice for your situation.
This is a learning tool. Always check CRA My Account records and talk to a qualified professional for your own numbers.
Plain English
If you give or lend money to your spouse or minor child to invest, the tax on that income gets charged back to you, not them. It prevents shifting income to a lower-taxed family member.
Technical definition
Under ITA Sections 74.1 and 74.2, if a taxpayer transfers or lends property to a spouse or common-law partner, both the income and capital gains are attributed back to the transferor. For transfers to a related minor, income (interest, dividends) is attributed back, but capital gains are not. These rules prevent income-splitting through non-arm's-length transfers.
Examples
- • You give your spouse $50,000 to invest. The $2,000 in interest earned is taxed on your return, not your spouse's, due to attribution.
- • You give your 15-year-old child $10,000 to invest in stocks. The $300 in dividends is attributed back to you, but if they sell the shares for a $500 capital gain, that gain is taxed in the child's hands.
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About this site
Every number on this site is sourced from CRA publications, the Income Tax Act, or provincial fiscal releases. We show the math, cite the sources, and never tell you what to do with your money.