Strategies
Adult children (age 18+) can be employed in the family business at reasonable salaries, providing them income at lower tax brackets while giving the business a deductible expense. Children can also hold investment assets in their own name, with income taxed at their (presumably lower) marginal rates. All arrangements must be genuine and at arm's-length.
Caution
The ITA scrutinizes family employment arrangements. The child must actually perform work, the salary must be reasonable for the work performed, and proper employment documentation must exist. Fictitious employment creates significant tax exposure.
Important Note: The information on this website is for general informational purposes only and does not constitute professional tax advice. Consult a qualified tax advisor before making financial decisions.